During the Covid pandemic, the Reserve Bank of Australia reports that the use of cash transactions by the public decline

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answerhappygod
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During the Covid pandemic, the Reserve Bank of Australia reports that the use of cash transactions by the public decline

Post by answerhappygod »

During the Covid pandemic, the Reserve Bank of Australia reports
that the use of cash transactions by the public declined yet the
holdings of currency by the public increased. Are these changes
consistent with the Baumol-Tobin model of money demand? If not,
what do you think could explain the observed increase in currency
holdings and decline in currency transactions?
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