Saturday 16 December 2017

The cash comeback: Evidence and possible explanations

a column for VOX: CEPR’s Policy Portal by Clemens Jobst and Helmut Stix

Many societies in the developed world have been shifting away from cash towards electronic alternatives. Despite this, there has been a remarkable increase in currency holdings over the past decade. This column looks at the evolution of cash holdings over time to shed light on this apparent contradiction. While circulating currency over GDP has been declining since WWII, there have been sizable increases in recent decades which are only partially explained by low interest rates.

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