If you bury gold bars that you mined yourself in your backyard, or you bury your salary in cash there straight from your paycheck, then you remove money from the system and thus not invest it. And effectively damage the economy, mainly via lack of liquidity.
It's hard making your capital inaccessible to the economy, but it's easy to not get the benefits of that working capital.
For instance, any time you park your money in a regular bank account or lend it at a suboptimal rate, you don't get some of the benefits.
It's hard making your capital inaccessible to the economy, but it's easy to not get the benefits of that working capital.
For instance, any time you park your money in a regular bank account or lend it at a suboptimal rate, you don't get some of the benefits.