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This paper develops a model of the process by which an overhang of liquidity can arise endogenously in a planned economy managed by a policymaker with price level, money wage, and employment objectives. The source of this liquidity overhang bias is the budgetary implications of the commitment the policymaker makes to employment, wages, and the price level in the face of unforecastable productivity shocks. Using a simple cash-in-advance model, I show that as the length of time between price and wage adjustments increases, the expected liquidity overhang must rise without bound.