Question

Write short note on "Hoarding".

Answer 1

Hoarding is the purchase of large quantities of a commodity by a speculator with the intent of benefiting from future price increases. Hoarding is commonly criticized for creating shortages of goods in the real economy. It is possible for hoarding to create a cycle of speculation, self-fulfilling prophecies, and inflation. However, hoarding is sometimes used in other economic contexts. For example, political leaders might complain that speculators are hoarding dollars during a currency crisis.