Eli5 What causes a coin shortage?

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I’m seeing places that say they’re short on coins, how does this happen? I looked it up and I’m still confused.

In: Economics

6 Answers

Anonymous 0 Comments

Most businesses don’t keep big stores of coins around, instead they rely on a constant flow of coins through the economy–some people pay with them, some people get them back in change, some get deposited at the bank, a business can request more coins from the bank, and so on. If people aren’t participating in the retail as much, because the government shut down businesses and told people to stay home, they’re keeping their coins at home and the flow stops.

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