Corporate Finance, DeFi, Blockchain, Web3 News
Corporate Finance, DeFi, Blockchain News

FY360° | Keep cash, but let the public hold central bank reserves

Recent experience with the zero lower bound on nominal interest rates, and the use of high-denomination notes by criminals and tax evaders, have led to revived proposals to phase out cash.


This column argues that abolishing cash may be neither necessary nor sufficient to overcome the zero lower bound problem, and would severely undermine privacy. Allowing the public to hold reserves at central banks could reduce the need for deposit insurance, although the transition to the new regime and the effects on credit supply must be carefully considered.

Kenneth Rogoff (2014a, b, c) has proposed phasing out cash – at least large-denomination notes in developed economies. The goal would be to:

- Eliminate the zero lower bound on nominal interest rates that may interfere with monetary policy; and
- Eliminate anonymous transaction that may obstruct the fight against crime, money laundering, tax evasion, and the like.

His intervention is set to revive an old debate about the role of cash that...

More:

FY360° by Finyear, la revue de presse à 360° en finance et gestion d'entreprise.

FY360° by Finyear (précédemment Financial Year Links) est un service Finyear dont la mission est de vous faire gagner du temps et de vous tenir informés. Notre équipe suit les actus pertinentes, les organise, créé un lien vers les sources originales et vous les communique sur le site Finyear et dans la newsletter quotidienne.
FY360° by Finyear n'est pas un produit fini : faites-nous savoir ce que vous en pensez et si vous avez une suggestion, une remarque, ou une source que nous devrions suivre, écrivez-nous.

FY360° by Finyear (ex Financial Year Links) is a Finyear service on a mission to save you time and keep you smart. Our team follows the relevant news, summarize it, link to the original sources and deliver it on the Finyear website and in the daily newsletter.
FY360° by Finyear is not a finished product: please let us know what you think and if you have a suggestion, a complaint, or something we should link to, email us.

Les médias du groupe Finyear


Jeudi 29 Janvier 2015




SEND / ENVOYER
    Les meilleurs placements | Investir en bourse
    Finyear© - All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Finyear© is prohibited
    Finyear : ISSN 2114-5369 (Copyright 2005-2023). Finyear, une marque et une publication de Calmon Partners Media & Events SAS, 34b rue Guillaume Tell, 75017 Paris.