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Is Cash Dead? Using Economic Concepts To Motivate Learning and Economic Thinking

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Abstract

Economics is at its best when used to shed light on questions of interest to students. Even better if the answers are at odds with commonly held but incorrect views. The velocity of circulation is probably the most neglected concept in macroeconomics classes but it can be used to open up a discussion on the behaviour of people and why demand for money may rise or fall. It can be used to address the question “Is Cash Dead?” Despite the rise in the number of ways that people can pay without using cash, there seems to be no drop in the amount of cash people actually wish to hold. This is a puzzle and a good opportunity to get students thinking about why this might be.

Suggested Citation

  • Philip Gunby & Stephen Hickson, 2016. "Is Cash Dead? Using Economic Concepts To Motivate Learning and Economic Thinking," Working Papers in Economics 16/30, University of Canterbury, Department of Economics and Finance.
    • Handle: RePEc:cbt:econwp:16/30
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    More about this item

    Keywords

    Principles of Economics; Velocity of Circulation; Cashless Society;
    All these keywords.

    JEL classification:

    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate

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