How much of the cash money in the economy of developing nations remain inactive and out of money flow in the economy for short or longer periods as traditional savings without productivity and transaction due to the tendency to hoard it in the individuals’ pockets, household jars, under their bed, or hidden in somewhere sounding their home? The puzzle is not that one but the government of those nations usually worry for lack of fund. These nations have been encountering financial hoarding crisis! More than 70% of their nations are rural families and lacking banking systems. Factors are many but lack of access to financial management institutions that can replace cash money are missing even in most part of their urban systems. The consequence of unlimited cash holdings by individuals result those economies into effects like shortage of money flow for investment in public sectors, payment systems and transactions let additional costs, theft encouragement, under saving rates, fake data and poor forecasting of economic systems, and many more can be listed. Don’t you think these nations need to go for financial management revolutions? Saving mostly flows to investment if the public makes well enabled environments including entrepreneurial development that takes the lead actions! Please, would you estimate cash hoardings in your own country/economy if youre from emerging economies?
Posted on: Mon, 06 Oct 2014 00:23:31 +0000
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