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Resilience and the cash infrastructure: The role of access, acceptance, availability, and affordability

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  • Rösl, Gerhard
  • Seitz, Franz

Abstract

We analyze the role of a well-functioning cash infrastructure for the stabilizing role of cash and the resilience of cash cycles. For that purpose, experiences from developed countries with low and high cash usage are assessed by distinguishing between demand and supply factors to demonstrate that cash has to keep a vital role as a means of payment not only to maintain its status of a highly liquid store-of-value but also as an efficient tool to combat crises. To do so, access, availability, acceptance, and affordability of cash are crucial building blocks of a robust cash infrastructure. Important aspects are also the public good characteristics of the "institution" cash which should encourage central banks to re-evaluate their position of "neutrality" as a player in the payments market to a more active role.

Suggested Citation

  • Rösl, Gerhard & Seitz, Franz, 2024. "Resilience and the cash infrastructure: The role of access, acceptance, availability, and affordability," Weidener Diskussionspapiere 93, University of Applied Sciences Amberg-Weiden (OTH).
    • Handle: RePEc:zbw:hawdps:305297
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    References listed on IDEAS

    as
    1. Welte, Angelika & Wu, Joy, 2023. "The acceptance of cash by Canadian merchants: Evidence from the 2021–22 Merchant Acceptance Survey," Journal of Payments Strategy & Systems, Henry Stewart Publications, vol. 17(3), pages 238-249, September.
    2. Franz Seitz & Lucas Devigne & Raymond de Pastor, 2022. "Different Motives for Holding Cash in France: an Analysis of the Net Cash Issues of the Banque de France," Working papers 888, Banque de France.
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    10. Labat, Héctor & Seitz, Franz & Lepecq, Guillaume, 2024. "Cash is more than a public good," Weidener Diskussionspapiere 92, University of Applied Sciences Amberg-Weiden (OTH).
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    More about this item

    Keywords

    Cash; banknotes; ATM; cash infrastructure;
    All these keywords.

    JEL classification:

    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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