Liquidity constraints shape Canadian consumption habits, impacting economic growth and stability.
The article looks at how people in Canada spend money when they have limited access to cash. It shows that when some people can't easily get money, they spend less when their income goes up or when interest rates change. The study found that these limits on cash are important, and people are more willing to switch between spending now or saving for later than previously thought. Also, the way people spend money changed around the time of the 1982 recession.