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<\/p>\n Email Link<\/p>\n London \n Households should keep some cash at home so they can pay for essentials during crises, according to an analysis of four major disruptive events in Europe, including the pandemic and Russia\u2019s invasion of Ukraine in 2022.\n <\/p>\n \n Consumer demand for banknotes surged in Europe during each of a string of crises, the research, published by the European Central Bank, showed Wednesday. Physical currency offers \u201cdistinct psychological and practical utility,\u201d says the study, whose title urges the public to \u201ckeep calm and carry cash.\u201d\n <\/p>\n \n The findings support the growing recognition among authorities that cash is \u201ca critical component of national crisis preparedness,\u201d the researchers write.\n <\/p>\n \n For example, they note, authorities in the Netherlands, Austria and Finland recommend that households keep between about \u20ac70 ($82) and \u20ac100 ($117) per person at home, or enough to cover essential needs for around 72 hours.\n <\/p>\n \n In Sweden, the recommendation is to hold enough cash to pay for things like food, medicines and fuel for at least a week. \u201cCalculate the total cost of at least a week\u2019s worth of these items for your family. Keep cash at home, in small denominations, for trading purposes if digital payment methods have been interrupted,\u201d the official advice<\/a> says.\n <\/p>\n \n Explaining banknotes\u2019 appeal, the European Central Bank study says that in moments of acute stress the public sees cash as a reliable store of value and a resilient means of payment. Another such crisis erupted in April, when a massive outage<\/a> knocked out power in Spain and Portugal, affecting payment terminals and forcing many shops to accept only cash payments.\n <\/p>\n \n \u201cCash provides essential redundancy \u2013 a \u2018spare tire\u2019 \u2013 for the payment system,\u201d the study\u2019s authors write. \u201cThis redundancy is vital for any system, as no system is infallible.\u201d\n <\/p>\n \n The unprecedented Covid-19 pandemic saw sustained cash hoarding by Europeans driven by prolonged uncertainty, including about their future income, they note.\n <\/p>\n \n Meanwhile, Moscow\u2019s full-scale invasion of Ukraine triggered a spike in demand for cash that was concentrated in countries bordering either Ukraine or Russia. This suggests \u201cpeople responded to heightened proximity to potential disruptions by accumulating portable liquidity,\u201d the researchers write.\n <\/p>\n \n Ensuring that Europeans are prepared for potential crises, such as war, has been high on authorities\u2019 agendas in recent years.\n <\/p>\n \n In March, the European Commission issued guidance saying European Union citizens should stockpile<\/a> enough food and other essentials to sustain them for at least 72 hours in the event of a crisis. The 18-page document said Europe was facing a new, bleaker reality, citing the war in Ukraine, sabotage of critical infrastructure and electronic warfare as prominent factors.\n <\/p>\n
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