The curse of cash refers to the negative consequences associated with the widespread use of physical currency in the economy. While cash has been a convenient medium of exchange for centuries, advancements in technology and the rise of digital payment systems have introduced new challenges and risks. One of the main concerns with cash is its role in facilitating illegal activities. Cash transactions provide anonymity and make it difficult for law enforcement agencies to trace the flow of money. This makes it easier for criminals to engage in activities such as money laundering, tax evasion, and the financing of terrorism. Moreover, the use of cash also contributes to the underground economy, where transactions occur outside the legal framework.
Price: $17.95/£14.99 ISBN: 9780691178363 Published: Jun 27, 2017 Copyright: 2017 Pages: 320 Size: 5 x 8 in. Illus: 30 line illus. More
It also explains in detail why, if low interest rates persist, the best way to reinvigorate monetary policy is to implement fully effective and unconstrained negative interest rates. proposes a plan to phase out most paper currency in the United States and other economically advanced nations, keeping only low-denomination notes to create what he terms a less-cash society.
Moreover, the use of cash also contributes to the underground economy, where transactions occur outside the legal framework. This includes undeclared income, unreported sales, and other illicit activities that undermine the integrity of the financial system. The existence of a large underground economy not only reduces tax revenues for governments but also creates an uneven playing field for businesses that operate within the legal framework.
Kenneth Rogoff
Another challenge associated with cash is its high cost to society. Banks and businesses spend significant resources on handling and processing physical currency. The transportation, storage, and security measures required for cash management are expensive and can be prone to theft and fraud. Additionally, the use of cash leads to inefficient and time-consuming transactions, particularly in situations that require exact change or large amounts of cash. In recent years, the advent of digital payment technologies has provided alternatives to the use of cash. Payment systems such as credit cards, mobile wallets, and cryptocurrencies offer convenience, security, and traceability advantages over physical currency. They also have the potential to enhance financial inclusion, as digital payment systems can reach populations that lack access to traditional banking services. However, despite the potential benefits of moving towards a cashless society, there are challenges that need to be addressed. Ensuring cybersecurity and protecting sensitive data from breaches is crucial. Additionally, measures must be taken to ensure that vulnerable populations, such as the elderly and those without access to digital technologies, are not left behind in the transition. In conclusion, the curse of cash stems from the negative consequences associated with the use of physical currency. While it provides anonymity and convenience, cash facilitates illegal activities, contributes to the underground economy, and imposes high costs on society. Exploring and adopting digital payment systems can help overcome these challenges, but careful consideration must be given to address potential risks and ensure that everyone can benefit from the transition..
Reviews for "The Cost of Cash: The Economic Implications of Physical Currency"
1. Jane - ⭐️⭐️ - I found "The Curse of Cash" to be incredibly dense and difficult to follow. The author delves into intricate details and historical anecdotes that felt unnecessary and confusing. Moreover, the book lacks a clear structure, making it even more challenging to grasp the main arguments. While I appreciate the author's efforts to dissect the downsides of physical cash, I believe this book could have benefited from a more concise and straightforward approach.
2. Mark - ⭐️ - "The Curse of Cash" failed to captivate me from the beginning. The writing style is dry and academic, making it difficult to maintain interest. Additionally, I found the arguments presented to be repetitive, often restating the same points without providing any new insights or evidence. Although the topic itself is intriguing, this book failed to deliver an engaging exploration of the nuances and consequences of a cashless society.
3. Sarah - ⭐️⭐️⭐️ - While "The Curse of Cash" provides an interesting perspective on the potential disadvantages of physical currency, the author's biases are evident throughout the book. It seemed that the author was more focused on convincing the reader of their viewpoint rather than presenting a balanced analysis. The book also lacked a compelling narrative to engage readers, relying heavily on technical jargon that might alienate those without a strong background in economics. Overall, I found this book to be a biased and inaccessible read.