The Macroeconomics of De-Cashing.
Material type:
TextSeries: IMF Working PapersPublication details: Washington, D.C. : International Monetary Fund, 2017.Description: 1 online resource (27 pages)Content type: - text
- computer
- online resource
- 9781475589399
- 1475589395
- 1018-5941
- 339 23
- HB172.5
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eBook
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e-Library | EBSCO Business | Available |
Print version record.
Cover; Contents; Abstract; I. Introduction; II. The Use of Cash; III. Macro-Analytics of De-Cashing; A. Cash Economics: Primer; B. Macroeconomic Framework; IV. Macroeconomic Effect of De-Cashing; A. Monetary Effects; B. Real Effects; C. Fiscal Effects; D. Balance of Payments Effects; E. Structural Effects; V. Conclusions and Policy Options; VI. References; Figures; 1. De-Cashing: The Macroeconomic Framework; 2. Monetary Effect of De-Cashing; 3. Real Effects of De-Cashing; 4. Fiscal Effects of De-Cashing; 5. Balance of Payments Effects of De-Cashing.
The paper presents a simple framework for the analysis of the macroeconomic implications of de-cashing. Defined as replacing paper currency with convertible deposits, de-cashing would affect all key macroeconomic sectors. The overall macreconomic impact of de-cashing would depend on the balance of growth-enhancing and growth-constraining factors. Starting from a traditional saving-investment balance, the paper develops a four-sector macroeconomic framework. It is purely illustrative and is designed to provide a roadmap for a systematic evaluation of de-cashing. The framework is disaggregated into the real, fiscal, monetary, and external sectors and potential implications of de-cashing are then identified in each sector. Finally, the paper draws a balance on possible positive and negative macroeconomic implications of de-cashing, and proposes policies capable of augmenting its economic and social benefits, while reducing potential costs.
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