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The Growing Demand for Cash

Author

Listed:
  • Gordon Flannigan

    (Reserve Bank of Australia)

  • Andrew Staib

    (Reserve Bank of Australia)

Abstract

While survey data indicate that the share of Australian consumers’ payments made with cash continues to fall, the number (and value) of banknotes in circulation continues to grow at around its trend pace of 6 per cent per year. This article discusses the reasons for these diverging trends, including: population, inflation and real income growth; a slower decline in total (rather than relative) cash payments; high cash users not captured by survey data; and the increasing stock of banknotes held for non-transactional purposes.

Suggested Citation

  • Gordon Flannigan & Andrew Staib, 2017. "The Growing Demand for Cash," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 63-74, September.
    • Handle: RePEc:rba:rbabul:sep2017-08
    as

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    File URL: https://www.rba.gov.au/publications/bulletin/2017/sep/pdf/bu-0917-8-the-growing-demand-for-cash.pdf
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    References listed on IDEAS

    as
    1. Tom Cusbert & Thomas Rohling, 2013. "Currency Demand during the Global Financial Crisis: Evidence from Australia," RBA Research Discussion Papers rdp2013-01, Reserve Bank of Australia.
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    Cited by:

    1. Rösl, Gerhard & Seitz, Franz, 2021. "Cash and crises: No surprises by the virus," IMFS Working Paper Series 150, Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS).
    2. Richard Finlay & Andrew Staib & Max Wakefield, 2018. "Where's the Money‽ An Investigation into the Whereabouts and Uses of Australian Banknotes," RBA Research Discussion Papers rdp2018-12, Reserve Bank of Australia.
    3. Mr. Tanai Khiaonarong & David Humphrey, 2019. "Cash Use Across Countries and the Demand for Central Bank Digital Currency," IMF Working Papers 2019/046, International Monetary Fund.

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