Demand For Cash in Circulation in the Czech Republic In 2002-2014 and Its Changes During the Financial Crisis

Autor:	Pavel Řežábek
Rok vydání:	2015
Předmět:	Macroeconomics Economics and Econometrics Sociology and Political Science business.industry media_common.quotation_subject Payment system Speculative demand Monetary economics Interest rate Currency Cash Financial crisis Economics Circulation (currency) business Foreign exchange risk media_common
Zdroj:	Politická ekonomie. 63:436-455
ISSN:	2336-8225 0032-3233
DOI:	10.18267/j.polek.1029
Popis:	The demand for cash in the Czech Republic is characterized since the establishment of the Czech currency in 1993 by a steady upward trend that has been disrupted by several non-standard episodes. One of the episodes was a substantial surge in Czech currency holdings after the outbreak of the financial crisis in late 2008. Results based on a model of currency demand show that the increase in currency in circulation in the last quarter of 2008 cannot be explained by common variables, which include retail sales, interest rate, innovation in payment systems, and tourism. Separate models of currency demand for small and large denominations revealed significant differences in terms of sensitivity to different variables. While small-value banknotes are mainly driven by domestic transactions, payment system innovations and tourism, the demand for large-value banknotes depends more on a short-term interest rate. Increased currency demand had to be explicitly modeled only in case of high-denomination banknotes and was best explained by the confidence indicator.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::66c3ad9169a5c7bb8003a483fa6830c2 https://doi.org/10.18267/j.polek.1029 Zobrazit plný text záznamu