The period from the 1950s to the late 1970s saw an almost uniform decline of cash-to-GDP ratios in industrial countries. A closer look at the German payment system suggests that the factor causing such a change has been the shift towards cashless wage payments. In this period, in Germany, the...

In Germany. Like in most other developed countries, per capita holdings of bank-notes are far higher than pure transaction-balances. One possible explanation is that DM-bills, like US$-bills, are circulating in large quantities abroad. However, according to estimates presented by the Bundesbank,...

The New Monetary Economics predicts that a low-transaction-cost world will be characterised by monetary separation. Current innovations in the payment system seem to bring us closer to such a moneyless world. However, market microstructure theory suggests that transaction costs will not fall to...