Narrow money and transaction technology: new disaggregated evidence

Francesco Columba

MPRA Paper from University Library of Munich, Germany

Abstract: This paper analyses the effect of transaction technology innovation on narrow money using Italian data disaggregated at provincial level. In particular, this study assesses the impact of the diffusion of ATMs (automated teller machines) and of POS (points of sale), on the demand for currency and on the demand for M1 using a unique data set. We find that transaction technology innovation has a negative effect on the demand for currency in circulation, while its effect on M1 is positive; additionally, heterogeneity in the use of cash within Italy is detected.

Keywords: Currency; Demand for money; Financial innovation; Monetary aggregates (search for similar items in EconPapers)
JEL-codes: E41 E51 (search for similar items in EconPapers)
Date: 2009-01-08
New Economics Papers: this item is included in nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Journal Article: Narrow money and transaction technology: New disaggregated evidence (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:12689

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