Cash in East Asia

2017 | Business & Finance

This book presents contributions by leading academics and practitioners from central banks to shed light on the function and impact of cash in Asian countries. It explores the impact of cash on society, the role of cash in monetary policy, and the future of cash in various monetary systems. Case studies from China, Japan, Korea and Singapore are contrasted with experiences from Europe. Recently the role of cash in the economy has become a much-discussed topic in Europe. But the issue is also of considerable relevance in Asia. Singapore and South Korea for example are quite advanced in the use of cashless payments for daily exchanges, while countries like Japan still largely rely on cash for a wide range of transactions. Some economists argue for the abolition of cash so as to facilitate transactions, reduce the monetary scope of criminal transaction, and expand the available options for monetary policy through negative interest rates. Opposing voices claim that such a step might reduce the freedom of individuals and lead to a greater potential for monetary repression.

The abolition of cash might also significantly impact the monetary psychology of the public, thereby influencing their inflation expectations, portfolio structure, saving behavior and other important monetary parameters.

Frank Rovekamp (Author)

Moritz Balz (Author)

Hanns Gunther Hilpert (Author)