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Cashless Society and De-dollarization in Ukraine. What is Missing from Present Discussions?

Author

Listed:
  • Marko Skreb

    (Canada-IMF Capacity Building Project)

  • Kostiantyn Khvedchuk

    (National Bank of Ukraine)

Abstract

The National Bank of Ukraine stepped on the track to a cashless economy aiming at reforming the financial system, improvement of the transmission mechanism, and reduction of the underground economy and corruption. A substantial part of money in the Ukrainian economy is estimated to be foreign cash in circulation. This article underlines the importance of considering it while conducting monetary policy. Negative consequences of high dollarization and proliferation of cash are emphasized. We discuss measures that are helpful in decreasing usage of cash in general and foreign cash in particular.

Suggested Citation

  • Marko Skreb & Kostiantyn Khvedchuk, 2016. "Cashless Society and De-dollarization in Ukraine. What is Missing from Present Discussions?," Visnyk of the National Bank of Ukraine, National Bank of Ukraine, issue 238, pages 6-12.
    • Handle: RePEc:ukb:journl:y:2016:i:238:p:6-12
    DOI: 10.26531/vnbu2017.238.006
    as

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    File URL: https://journal.bank.gov.ua/en/article/2016/238/01
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    References listed on IDEAS

    as
    1. Oomes, Nienke & Ohnsorge, Franziska, 2005. "Money demand and inflation in dollarized economies: The case of Russia," Journal of Comparative Economics, Elsevier, vol. 33(3), pages 462-483, September.
    2. Mr. Luis Catão & Mr. Marco Terrones, 2016. "Financial De-Dollarization: A Global Perspective and the Peruvian Experience," IMF Working Papers 2016/097, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Cash demand; dollarization; negative mirage; hysteresis; cashless economy;
    All these keywords.

    JEL classification:

    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

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