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The Blessing of Cash

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  • Seitz, Franz
  • Krueger, Malte

Abstract

This study investigates the benefits of cash in a general context. First, we explicitly address the arguments of cash critics, who are calling for cash to be abolished altogether. Second, we show that cash plays a crucial role in the current two-tier banking system. Third, we are discussing a number of selected benefits of cash, inter alia its use in financial crisis and the provision of privacy. We conclude that the abolition of cash would have major drawbacks and could entail undesirable consequences.

Suggested Citation

  • Seitz, Franz & Krueger, Malte, 2017. "The Blessing of Cash," International Cash Conference 2017 – War on Cash: Is there a Future for Cash? 162911, Deutsche Bundesbank.
    • Handle: RePEc:zbw:iccp17:162911
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    File URL: https://www.econstor.eu/bitstream/10419/162911/1/KruegerSeitz.pdf
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Will coronavirus accelerate the move towards a cashless economy?
      by bbatiz in The Cashless Society on 2020-09-08 16:54:28

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    2. Yulia Titova & Delia Cornea & Sébastien Lemeunier, 2021. "What Factors Keep Cash Alive in the European Union?," De Economist, Springer, vol. 169(3), pages 291-317, August.

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    More about this item

    Keywords

    cash; payments; cash abolition; monetary policy;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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