Standard transaction cost arguments can only partially explain why the share of cash transactions is still high in many … distinctive feature of cash - a glance into one's pocket provides a signal for both the remaining budget as well as the level of … past expenses. We propose a theoretical framework which incorporates this feature of cash, and derives implications not …

Germans are still very fond of using cash. Of all direct payment transactions, cash accounts for an astounding 82% in … cash remains so important. We propose a two-stage empirical framework which jointlyexplains credit card ownership and the … use of cash. Our results indicate that the pattern of cash usage is compatible with systematic economic decision making …

hold cash. In our model, the introduction of a central bank digital currency (CBDC) as a store of value that is superior to … cash leads to bank disintermediation as some depositors opt for switching to CBDC based on their beliefs. While CBDC …The bulk of euro-denominated cash is held for store of value purposes, with such holdings sharply increasing in times …

We study the macroeconomic effects of central bank digital currency (CBDC) in a dynamic general equilibrium model …. Timing and information frictions create a need for inside (bank deposits) and outside money (CBDC) to finance production. To … steer the quantity of CBDC, the central bank can set the lending and deposit rates for CBDC as well as collateral and …

broadly echoes policy makers' concerns about bank disintermediation and financial stability risks, it also provides conditions …

market that explicitly accounts for the means-of-exchange function of bank deposits and CBDC into a New Keynesian model with … financial frictions. The central bank influences the store-of-value function of money through a conventional Taylor rule while … time however, the provision of CBDC helps smooth responses to macroeconomic shocks. By supplying CBDC, the central bank …

We provide evidence on the estimated effects of digital euro news on bank valuations and lending and find that they … bank intermediation and the economy. Under empirically-relevant assumptions (i.e., central bank collateral requirements and … imperfect substitutability across CBDC, cash and deposits), the issuance of CBDC yields non-trivial trade-offs and effects …

- wide access to cash is fundamentally important for a healthy economy. In this study, three main research areas were …' payment choices; 3. underlying factors for holding cash in a wallet (i.e. for transactional purposes). Regression results for … income and education, or lower level of cash income are more likely to prefer and actually use electronic payment methods …

This paper describes a machine learning technique to timely identify cases of individual bank financial distress. Our … financial distress, in order to capture bank distress cases at an earlier stage with respect to the existing literature on bank … failures; by doing so, given the rarity of bank defaults in Europe we significantly increase the number of events on which to …