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Yes they do. Here's a Bloomberg headline I just ran across today: "Rich Retirees Are Hoarding Cash Out of Fear" [0] The word hoarding is often used to cast or

Yes they do. Here's a Bloomberg headline I just ran across today: "Rich Retirees Are Hoarding Cash Out of Fear" [0] The word hoarding is often used to cast ordinary and prudent saving of stable, non-speculative currencies like US Dollars and Euros in a negative light. Economists and central bankers often want the inflation rate to be higher - to reduce debt loads, among other reasons - so they want people (other people, of course) to stop saving so much and start spending more. [0] https://www.bloomberg.com/news/articles/2017-05-16/rich-retirees-are-hoarding-cash-out-of-fear https://www.bloomberg.com/news/articles/2017-05-16/rich-reti... edit: grammar

eropple 9y ago
Huh. I stand corrected. I've never seen that before. Mea culpa.
zzalpha 9y ago
Well, there's an efficiency argument related to holding onto cash instead of investing. That is, holding onto large quantities of cash and not investing means losing out on returns. The only time that's rational is if there's significant market risk, or if you get better returns due to appreciation in currency value (which amounts to treating money like a commodity/investment). So, I'd argue that holding onto large quantities of money in lieu of allowing it to circulate due to fears does qualify as "hoarding", insofar as the money could be put to better, more productive use while the person holding onto the cash may be losing out on potential upside. The term is particularly apt when there are concerns of a deflationary spiral, as cash hoarding truly does become a problem in that circumstance.