John Winchcombe
Editor
Thursday, September 25, 2025
Categories
Cash Usage
The Psychology Behind Money Hoarding
The ‘Cash Paradox’ is the well known conundrum of cash transaction volumes falling while cash in circulation volumes increase. This gap can only be explained by cash hoarding. Much of this will be by commercial banks, hence the surge in cash returned to the European Central Bank once its interest rate turned from negative to positive.
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