Cash Is Alive: How Economists Explain Holding and Use of Cash

Oz Shy

34 citations0/0 files storedJournal of Economic Literature

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Monetary Policy and Economic Impact Financial Literacy, Pension, Retirement Analysis Economic theories and models

Abstract

Research on holding and use of cash involves many aspects, such as reasons for holding and hoarding cash, transactional demand for cash, cash management, type of spending paid with cash, type of consumer who pays cash, merchant acceptance, how consumers get cash, currency denominations, legal aspects, cash substitutes, and cost of cash. The purpose of this article is to introduce the reader to some of the research economists do on consumer holding and use of cash. (JEL D11, D12, E26, E31, E41, E42)

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References

1952The Transactions Demand for Cash: An Inventory Theoretic Approach 1956The Interest-Elasticity of Transactions Demand For Cash 1989On Money as a Medium of Exchange 1966A Model of the Demand for Money by Firms 2012International Journal of Central Banking 2000Inflation and Welfare 1986Functional equivalence between liquidity costs and the utility of money 1984Money and Interest in Cash-In-Advance Economy

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2022The convenience of electronic payments and consumer cash demand

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