The Stress of Carrying Cash

摘要

Can too much cash possibly be a bad thing? Right now the answer is yes. In the U.S., individuals, banks, and the Federal Reserve find themselves locked in a vicious cycle of retrenchment. It plays out like this: Households worried about the economy and gyrating markets are piling into cash. That puts a strain on banks, which have few opportunities to put that money profitably to work, but still have to pay interest and maintenance fees on the funds they take in.