Demand for Cash and its Determinants - a Post-Crisis Approach1

IF 1.7 Q3 BUSINESS, FINANCE

Journal of Central Banking Theory and Practice Pub Date : 2023-05-01 DOI:10.2478/jcbtp-2023-0016

Ilona Skibińska-Fabrowska

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引用次数: 0

Abstract

Abstract The use of cashless payment instruments has been on an increase over many years now. At the same time, demand for cash has been on the rise as well and we can observe a particularly high level of growth demand for banknotes during crisis times. The increase in demand for cash known as the “banknote paradox” is a phenomenon observed in many economies. It results from the existence of two streams of demand for cash - transactional and precautionary, and the differences in the directions of their changes from the point of view of the central bank and other entities involved in cash transactions, since it enables the optimization of cash supply management, which allows, on the one hand, to reduce the costs of cash processing and, on the other hand, to improve the effectiveness of monetary policy. This paper estimates the share of the transaction demand for cash with the aggregate demand. The strength and direction of the impact of selected macroeconomic and behavioural factors (uncertainty caused by the Global Financial Crisis and the Pandemic Crisis) on transaction and precautionary demand for cash were also assessed. A novel approach to the problem of demand for cash is based on considering the impact of macroeconomic shocks in the form of crises on the demand for cash.

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现金需求及其决定因素——一种后危机的方法1

摘要多年来，无现金支付工具的使用一直在增加。与此同时，对现金的需求也在增长，我们可以观察到，在危机时期，对纸币的需求增长特别高。被称为“纸币悖论”的现金需求增加是许多经济体观察到的一种现象。这是由于存在交易性和预防性两种现金需求流，以及从中央银行和参与现金交易的其他实体的角度来看，这两种需求流的变化方向存在差异，因为它能够优化现金供应管理，一方面可以降低现金处理成本，另一方面，提高货币政策的有效性。本文估计了现金交易需求在总需求中所占的份额。还评估了选定的宏观经济和行为因素（全球金融危机和流行病危机造成的不确定性）对交易和预防性现金需求的影响的强度和方向。解决现金需求问题的一种新方法是考虑危机形式的宏观经济冲击对现金需求的影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Central Banking Theory and Practice BUSINESS, FINANCE-

CiteScore

2.80

自引率

57.10%

发文量

审稿时长

7 weeks

期刊介绍： Journal of Central Banking Theory and Practice is a scientific journal dedicated to publishing quality papers and disseminating original, relevant and applicable economic research. Scientific and professional papers that are published in the Journal of Central Banking Theory and Practice cover theoretical and practical aspects of central banking, monetary policy, including the supervision issues, as well as banking and management in central banks. The purpose of the journal is to educate the general public about the key issues that the central bankers globally face, as well as about contemporary research and achievements in the field of central banking theory and practice.