Aufsätze Ökonomik

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Prof. Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.

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Contingency cash is also referred to as cash on hand (contingency cash)

The holding of cash in excess of what is actually required, – in order to be prepared for possible cash outflows exceeding the normal level, or – because the (punctual) receipt of payments from invested assets can never be counted on with absolute certainty. In national economics, this phenomenon has been discussed in detail in numerous models. With the advent of cards, these considerations are largely irrelevant. – See cash ratio, income motive, card, liquidity preference, reserve base, caution motive. – Cf. Monthly Report of the Deutsche Bundesbank, September 2007, p. 52 (precautionary saving and income uncertainty; formula for estimation).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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