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Reducing Household Spending Is the Main Source of Additional Cash in 2020

Alina M. Grebenkina – Researcher of the Russian Presidential Academy of National Economy and Public Administration (Moscow, Russia). E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Sergey M. Drobyshevsky – Scientific Director of the Gaidar Institute for Economic Policy; Deputy Scientific Director of the IAES, Russian Presidential Academy of National Economy and Public Administration, Doctor of Economic Sciences, Associate Professor (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Pavel V. Trunin – Head of Center for Macroeconomics and Finance of the Gaidar Institute for Economic Policy; Director of Center for Central Banks Studies of the Russian Presidential Academy of National Economy and Public Administration, Doctor of Economic Sciences (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

In 2020, Russia saw a significant increase in the proportion of cash in circulation. The main source of this additional amount of cash was the reduction in household spending, which led to the non-return of cash previously put in circulation for transactions for the purchase of goods and services, as well as keeping of unspent income in cash as a precautionary measure in the face of increasing uncertainty.

The article was written on the basis of the RANEPA state assignment research programme.

Key words: expenses of the population, cash on hand, money supply, denomination of banknotes.

JEL-сodes: E11, E41, E52.