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It's not as if it always re-circulates. People often sit on cash if there are no obvious productive investments.
by nitwit005 5y ago
It's not as if it always re-circulates. People often sit on cash if there are no obvious productive investments.
- missedthecue 5y agoBy "sit on cash" you mean put it in a bank account where it is loaned out to businesses and homebuyers and governments who then spend it and continue circulating it.
- nitwit005 5y agoOr simply held as excess reserves, as has been happening recently: https://en.wikipedia.org/wiki/Excess_reserves#/media/File:FedExcessReserves1984to2019.png https://en.wikipedia.org/wiki/Excess_reserves#/media/File:Fe...