Arbeitspapier
Understanding the cash demand puzzle
We develop a model to explain a puzzling trend in cash demand in recent years: the value of bank notes in circulation as a percentage of GDP has remained stable despite decreasing cash usage at points of sale owing to competition from alternative means of payment such as credit cards. The main feature of the model is that cash circulates between economic activities where the substitutability between cash and other means of payment is uneven. Our model predicts that, once credit expands beyond a certain level, agents adjust their cash management practices in response to further credit expansions, causing the velocity of cash to slow down, so that the demand for cash can remain flat despite diminishing cash transactions.
- Sprache
-
Englisch
- Erschienen in
-
Series: Bank of Canada Working Paper ; No. 2014-22
- Klassifikation
-
Wirtschaft
Demand for Money
Money Supply; Credit; Money Multipliers
- Thema
-
Bank notes
E-money
Credit and credit aggregates
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Jiang, Janet Hua
Shao, Enchuan
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Canada
- (wo)
-
Ottawa
- (wann)
-
2014
- DOI
-
doi:10.34989/swp-2014-22
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Jiang, Janet Hua
- Shao, Enchuan
- Bank of Canada
Entstanden
- 2014
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