Kilian Rieder, 20 April 2020

Since mid-March 2020, countries have seen consumers panic buying large quantities of groceries in reaction to the COVID-19 pandemic. Why does panic buying arise and how may one mitigate its negative consequences? This column examines the Bank of England’s response to financial crises during the 19th century and suggests that a key action is to counter those incentives that turn panic buying into a rational strategy.

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