Kim Schoenholtz and Stephen Cechetti: Has Paper Money Outlived Its Purpose? tumblr_inline_na03zuu4Ny1r57lmx.png

Link to Kim Schoenholtz’s and Stephen Cechetti’s post “Has paper money outlived its purpose?”

This is a nice article that speaks favorably of my proposal for enabling negative interest rates. In the end, they come down in favor of keeping paper money.

I wish Kim and Stephen had made it clearer that my proposal in “How Subordinating Paper Currency to Electronic Money Can End Recessions and End Inflation” involves keeping paper money in a subordinate role that retains the positive aspects of paper money they mention. Indeed, during periods of time in which negative interest rates haven’t been necessary for a while, the monetary system I propose would look very much like the current system. That makes it very different from proposals to abolish paper money entirely.