http://finance.yahoo.com/news/paper-currency-gold-004346371.html
"The real problem, which economists are starting to recognize, is that paper cash is an impediment to effective monetary policy, and therefore economic growth."
"In our world of ultra-low inflation, it may be necessary for central banks to cut rates to below zero. However if that happens, consumers can always take physical cash out of the banking system to avoid paying negative rates. In a world of purely digital money, the central bank could set interest rates wherever was appropriate."
"So not only is cash cumbersome like gold (time consuming, physically costly) it's an increasingly problematic component of the monetary system. Like gold, it's a form of hard money that's growth-constraining and deflationary."
:doodoo:
"The real problem, which economists are starting to recognize, is that paper cash is an impediment to effective monetary policy, and therefore economic growth."
"In our world of ultra-low inflation, it may be necessary for central banks to cut rates to below zero. However if that happens, consumers can always take physical cash out of the banking system to avoid paying negative rates. In a world of purely digital money, the central bank could set interest rates wherever was appropriate."
"So not only is cash cumbersome like gold (time consuming, physically costly) it's an increasingly problematic component of the monetary system. Like gold, it's a form of hard money that's growth-constraining and deflationary."
:doodoo: