costs for cash holders and money supply increase. Nevertheless, a CBDC is able to increase welfare as long as the share of …This paper examines whether a central bank digital currency (CBDC) reinforces inefficiencies in transactions with cash … extended by a CBDC. We show that an interest-bearing CBDC reinforces inefficiencies in transactions with cash since opportunity …

The quality of banknotes in the cash cycles of countries in the Eurosystem varies, despite all of these countries using … banknote quality in circulation as well as central bank cash cycle costs. Production variations in new banknotes, the fitness … identical euro banknotes. While it is known that this is dependent on national characteristics, such as public use and the …

John Maynard Keynes's liquidity preference theory, Kregel argued that such rejection leaves the relation between money and … requires an extension of the circuit theory of money, along the lines of the credit and state money approaches of modern …. Kregel ; Chartalist ; Modern Money Theory ; State Money ; Credit Money ; Default …

In many industrialized countries, cash usage at points of sale has been decreasing owing to competition from … alternative means of payment such as credit cards. At the same time, cash demand, measured as currency in circulation over GDP … the “cash paradox,” poses a challenge to standard monetary models. We introduce two new features into the standard cash …

estimating the volumes of national-issued banknotes in circulation for the three years ahead. As at the end of 2021, more than 80 … per cent of euro banknotes in circulation (cumulated net issuance) had been issued by the national central banks of France …, Germany, Italy and Spain (‘4 NCBs’). To date, the 4 NCBs have been using ARIMAX models to forecast the banknotes issued …

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 …

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 …

that analyze the impact of such evolution on the demand for cash. Beyond data availability, this research is complicated by … the fact that the debit card provides two services for consumers, cash withdrawal and payment, that have contrasted … effects on cash holdings and cash usage. Using micro-level data, we estimate the impacts of both services on the demand for …

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 …