Fiscal Policy Trends: Bank Runs Can Occur in Uncertain Times, Including During a Pandemic, but They Are Not Likely - Especially in Canada

  • Christos Shiamptanis

Abstract

In times of elevated uncertainty and stress, people tend to panic and engage in stockpiling, a behaviour that is amplified by the fear of missing out. Some rush to supermarkets to accumulate toilet paper and non-perishable items, while others rush to the bank and withdraw large amounts of cash. During economic downturns, some might lose faith in their financial institution, and this fear of losing savings can lead to a run on banks.

Published
2020-04-07
Section
Communiqués