{"id":30666,"date":"2015-09-19T15:22:28","date_gmt":"2015-09-19T14:22:28","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=30666"},"modified":"2015-09-19T15:22:28","modified_gmt":"2015-09-19T14:22:28","slug":"theres-no-hope-that-the-bank-of-england-can-get-rid-of-cash","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2015\/09\/19\/theres-no-hope-that-the-bank-of-england-can-get-rid-of-cash\/","title":{"rendered":"There&#8217;s no hope that the Bank of England can get rid of cash"},"content":{"rendered":"<p>I referred <a href=\"http:\/\/www.taxresearch.org.uk\/Blog\/2015\/09\/19\/abolishing-cash-or-building-social-housing-which-is-best-to-boost-the-economy\/\" target=\"_blank\">this morning to Bank of England chief economist Andy Haldane's idea<\/a> that the Bank of England abolish cash to enforce negative interest rates in the event of a future economic downturn.<\/p>\n<p>There are some notable problems with doing so, some of which are mentioned <a href=\"http:\/\/www.bankofengland.co.uk\/publications\/Pages\/quarterlybulletin\/2015\/q3.aspx\" target=\"_blank\">in this infographic issued by the Bank of England this week<\/a>:<\/p>\n<p><a href=\"http:\/\/www.taxresearch.org.uk\/Blog\/2015\/09\/19\/theres-no-hope-that-the-bank-of-england-can-get-rid-of-cash\/screen-shot-2015-09-19-at-14-54-32\/\" rel=\"attachment wp-att-30667\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-30667 size-large\" src=\"http:\/\/www.taxresearch.org.uk\/Blog\/wp-content\/uploads\/2015\/09\/Screen-Shot-2015-09-19-at-14.54.32-550x570.png\" alt=\"Screen Shot 2015-09-19 at 14.54.32\" width=\"550\" height=\"570\" srcset=\"https:\/\/www.taxresearch.org.uk\/Blog\/wp-content\/uploads\/2015\/09\/Screen-Shot-2015-09-19-at-14.54.32-550x570.png 550w, https:\/\/www.taxresearch.org.uk\/Blog\/wp-content\/uploads\/2015\/09\/Screen-Shot-2015-09-19-at-14.54.32-290x300.png 290w, https:\/\/www.taxresearch.org.uk\/Blog\/wp-content\/uploads\/2015\/09\/Screen-Shot-2015-09-19-at-14.54.32-217x225.png 217w, https:\/\/www.taxresearch.org.uk\/Blog\/wp-content\/uploads\/2015\/09\/Screen-Shot-2015-09-19-at-14.54.32-127x132.png 127w, https:\/\/www.taxresearch.org.uk\/Blog\/wp-content\/uploads\/2015\/09\/Screen-Shot-2015-09-19-at-14.54.32.png 1408w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><\/p>\n<p>Demand for notes and coins has risen in the economy of late. I will discuss the implications of that in another blog. But for now note that in the era of electronic money and swipe card payment the demand for cash is rising.<\/p>\n<p>Some reasons are discussed in this Bank of England video, also out this week:<\/p>\n<p><iframe loading=\"lazy\" title=\"The future of cash - Quarterly Bulletin article\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/dXBLoAWzulU?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>The chance that Andy Haldane will persuade anyone to abandon cash is remote in the extreme.<\/p>\n<p>In that case what he is effectively saying is that monetary policy is dead.<\/p>\n<p>And that might leave\u00a0People's Quantitative Easing as the only game in town.<\/p>\n<p>Fiscal policy is what is needed now.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I referred this morning to Bank of England chief economist Andy Haldane&#8217;s idea that the Bank of England abolish cash to enforce negative interest rates<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2015\/09\/19\/theres-no-hope-that-the-bank-of-england-can-get-rid-of-cash\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-30666","post","type-post","status-publish","format-standard","hentry","category-economics"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/30666","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=30666"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/30666\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=30666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=30666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=30666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}