Currency Use and Payment Patterns

1 Theory and Empirical Evidence.- 1.1 Introduction.- 1.2 Macro-economic theory.- 1.3 Micro-economic theory.- 1.4 Empirical evidence from earlier studies.- 1.5 The demand for currency in the Netherlands 1955–1990.- 1.6 Conclusions.- 2 The Use of Money in a Micro-Economic Perspective.- 2.1 Introduction.- 2.2 The cash management of households.- 2.3 Manner of payment and use of currency.- 2.4 Conclusions.- 3 The Hoarding of Currency in the Netherlands.- 3.1 Introduction.- 3.2 Hoarding in a economic-theoretical setting.- 3.3 Estimation of hoarding.- 3.4 Cross-sectional evidence on the Fl. 1,000 note.- 3.5 Empirical implications for the demand for currency.- 3.6 Conclusions.- 4 Demand for Currency in an International Perspective.- 4.1 Introduction.- 4.2 Demand for currency by the public.- 4.3 Cash holdings of banks.- 4.4 The importance of hoarding.- 4.5 Share of coin in currency circulation.- 4.6 Number of notes and denominational structure.- 4.7 Conclusions.- 5 Epilogue.- 5.1 Summary.- 5.2 Conclusions.- Annex.- I Total payments, cash payments, velocity of currency circulation and economic key variables in a number of countries.- II Money, payments, transactions and economic key variables in the Netherlands 1955–1990.- III Composition of consumer expenditures in the Netherlands 1987.- IV Average note life and return rate by denomination in the Netherlands 1955–1990.- V Tabular summary of survey-estimation of sector demand for Fl. 1,000 notes.- VI Importance of ATMs, POS and credit cards in fifteen countries 1978–1989.- References.