The case for cash
James McAndrews ()
Latin American Journal of Central Banking (previously Monetaria), 2020, vol. 1, issue 1
Cash is an extremely useful social contrivance. Kenneth Rogoff, who calls for phasing-out high denomination cash over time, recently discussed two possible drawbacks of high-denomination cash: the extensive use of high-denomination cash in crime and in illicit and corrupt activities and the role cash plays in preventing deeply negative nominal interest rates imposed on bank accounts. I will argue that using cash is preferable to the alternative, which entails worse types of crimes committed in the absence of cash. Consequently, the current high-denomination cash in the U.S. should be retained.
Keywords: Cash; Debt; Crime (search for similar items in EconPapers)
JEL-codes: D23 E42 E58 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:lajcba:v:1:y:2020:i:1:s2666143820300041
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Latin American Journal of Central Banking (previously Monetaria) is currently edited by Manuel Ramos-Francia
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