BS Number Wise: Cash is king, once again. Should you be worried?

A BS analysis shows that a crisis leads to a higher demand for money, which is complemented by an increase in currency in circulation

Have you ever wondered how much all the cash held by the entire country would add up to? While we were exploring this question, we did not arrive at a clear answer. Instead, we faced a deeper question. The nature of cash in India is not the same anymore. It is changing.

But to understand this we need to explore how we perceive money.

In 1936, a few years after The Great Depression. John Maynard Keynes, the timeless economist, presented a new theory of money. The 1929 stock market crash necessitated a relook at the parochial, consumption-based, meaning of money.