Conference Proceedings

Rethinking money theory in light of fragile states: what a globalising world infers for cash use patterns

Antonia Settle

Deutsche Bundesbank Eurosystem | Published : 2014


Research shows that cash holdings abroad constitute increasing ratios of narrow money amongst key international currencies. This paper is based on research that explores this phenomenon at the international level, focusing on the role herein of monetary instability in peripheral countries. Drawing on studies of money use in developing countries as well as the author’s fieldwork surveys, the paper explores the link between monetary instability and the use of non-local cash and non-money instruments in peripheral countries to draw out a key explanatory variable that tends to be ignored in money demand and savings research. Here a new fluidity in money supply and money demand in a context of gr..

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