Hoarding
The hoarding is a technical term economic describing a accumulation of money to benefit from it or absence from better employment, and not principle of economy or productive investment.
Hoarding: ask for currency at ends of speculation or use of currency at ends of conservation
Hoarding is a preference for the liquidity on behalf of economic agents at ends of speculation or, more often, for lack of a better employment.
Its most massive aspect currently is the accumulation of reserves in dollars in the form of marketable securities of the American treasure by the Asian central banks.
In the systems the mono one or bimetalism (like the Currency of Old Mode), hoarding consisted in withdrawing circulation of the metal species in the hope to obtain an appreciation in the event of monetary change (operation by which the Royal Treasury increased the course of books tournaments of a gold weight given). This appreciation consisted in monopolizing a quota of the revenue of Seigneuriage.
In the systems of currency-paper or scriptural contemporary, hoarding consists in increasing its liquid assets while saving more, in the hope to buy remunerative credits later on (example: bond titles offering a better remuneration after a rise of interest rates).
The hoarding which was a Demande of currency at ends of Spéculation became generally an use of currency not finding an other use.
In the common direction, hoarding can indicate an accumulation of credits accompanied by their withdrawal of the productive circuits of the economy (gold, stamps, etc).
Effects of hoarding on the Economy: theory keynésienne of hoarding
In 1936, Keynes theorizes the impact of hoarding on the Income by means of its concept of " trap door with liquidités". In on this side certain interest rate, the request for currency at ends of speculation becomes infinite and thus creates a rigidity with the fall of interest rates. This request for currency at ends of speculation is added at the request of currency at ends of transaction and precaution, which determines the level of saving of the agents. By the means of the mechanism of the multiplier, this surplus of saving will decrease consumption then the investment, because of negative anticipations (on consumption) of the contractors, and, in fine , the National revenue.
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