Using cash to monitor liquidity - implications for payments, currency demand and withdrawal behavior

Research, Preprint English OPEN
Von Kalckreuth, Ulf; Schmidt, Tobias; Stix, Helmut;
  • Publisher: Frankfurt a. M.: European Central Bank (ECB)
  • Subject: survey data | E41 | D12 | E58 | payment innovation | withdrawal behavior | cash usage | currency demand | Payment instruments | cash usage, currency demand, Payment behavior, payment cards, payment innovation, Payment instruments, survey data, withdrawal behavior | payment cards | payment behavior,payment instruments,withdrawal behavior,payment cards,payment innovation,cash usage,currency demand,survey data | Payment behavior
    • jel: jel:E41 | jel:E58 | jel:D12
      ddc: ddc:330

Standard transaction cost arguments can only partially explain why the share of cash transactions is still high in many countries. This paper shows that consumers’ desire to monitor liquidity is one of the reasons. Consumers make use of a distinctive feature of cash – a... View more
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