Where has all the money gone? I hope you can enlighten me.

Back in March money was flowing around the UK economy, albeit in an unfair and unequal way many of us have complained about.

But then suddenly the brakes were put on because of Covid-19.

So what has happened since?

The general public simultaneously stopped passing it to and receiving it from many producers and employers but still had to pay taxes and in some cases rent/mortgage/utility bills.

Producers and employers stopped giving it to employees and suppliers but also stopped receiving it from the public and other companies as things ground to a halt.

They still had to pay some taxes, loan repayments and rents/utility bills etc.

Back to individuals and households. Some have had to borrow money to survive which means banks etc have created some new money. Others have managed to save money as expenditure has reduced. Savings take money out of circulation.

The government has created lots of new money via the Job Retention Scheme and grants etc. Banks have done the same via bounce back loans etc. Assume most of this is leaving companies as quickly as it arrives to pay salaries, rents and service debts.

So is there the same amount of money in the economy or is there less/more?

If less, is it being destroyed through debt service and tax payments to is it being hoarded in savings by an entity that has somehow and maybe inadvertently profited from the crisis?

Whatever the answer, I'm pretty confident it's not the case that the lost money is sitting in the saving accounts of the average person.

If the reduction in supply isn't simply a result of money destruction through taxes and debt service the making the public pay is vindictive.

*Apologies for typos, hope it still makes some kind of sense.