More Cash, Anyone?

As a part of its complex contingency plan, the Federal Reserve expects to print extra money during late 1999 to prepare for increased demand for cash (from mattress hoarders). The FRB will simply print in advance, and then slow down its printing schedule in 2000 to readjust.

So the country won't be swamped with extra money but banks should have sufficient cash to meet demands. As an ultimate contingency plan, the FRB will delay destruction of worn money. There should be enough cash, but some will be really crisp and some will look pretty tired.

Copyright © 1998 Compliance Action. Originally appeared in Compliance Action, Vol. 3, No. 12, 10/98