Financial imbalances and macroprudential policy in a currency union
Despite the efforts that commercials banks have made to promote the use of debit cards and the introduction of new payment methods, the migration from cash to electronic payment methods is not proceeding as quickly as sometimes expected. Why do people pay by cash on one occasion and by bank card on another? How conscious is people's decision making? How rational are there reasons for choosing one method over another? For policy makers at a central bank it is relevant to have insight into the psychological aspects and effects of payment method choice, because it provides a pointer to the roles that payment methods will play in the future. Also these insights are helpful if an authority wants to encourage the usage of a specific means of payment.
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