Companies’ cash position: understanding the gap between aggregated data and perceptions

Post No.375. Companies’ cash holdings as measured at aggregate level in the monetary statistics are higher than before the Covid crisis. But according to our business survey, business leaders have a less positive perception of their individual situation than before. In this post, we suggest a reason for this: the abundant liquidity provided by SGLs may have led business leaders to revise upwards the cash position deemed necessary to carry out their activities.