By Bill Flanagan Federal regulators say the nation's bankers have the Year 2000 computer problem well in hand. There will sure be plenty of cash. No, says Stuart Hoffman, chief economist, PNC Bank.
Banks keep only a small percentage of their assets as currency.
As they need more cash, they tap their accounts at the Fed. After Y2k, the extra cash goes back to the bank, back to the Fed and back out of circulation. There's no net inflationary effect on the economy. All rights reserved. Click here for Terms of Use and Privacy Policy.