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In your deflationary scenario, you'd be better off holding the cash, because there are costs for storage. Your cash would appreciate as much as the price of the
by wtn 17y ago
In your deflationary scenario, you'd be better off holding the cash, because there are costs for storage. Your cash would appreciate as much as the price of the goods.
- hga 17y agoBut holding onto physical cash is not without costs, e.g. you have to provide your own security, it's probably not going to be as good as a bank's, etc.
- wtn 17y agoIn the investment domain, cash is shorthand for T-bills, money markets accounts, insured bank deposits. I wasn't referring to actual banknotes. If the banking system fails entirely, banknotes will be equally worthless as accounts.