Economic literature and empirical evidence consistently indicate that negative interest rates influence cash holding behavior, often driving an increased demand for cash as a medium of wealth storage.
Evidence for · 3
The effects of negative interest rates on cash usage: Evidence for EU countries
2020 · cited by 17
Using empirical difference-in-differences analysis across EU countries, this study demonstrates that negative interest rates lead to an observable increase in cash usage.
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More for · 2
Negative interest rates and the demand for cash
2016 · cited by 8
This study discusses how negative interest rates imposed by central banks create incentives for depositors and banks to increase their demand for and holding of physical cash.
On the Negatives of Negative Interest Rates
2023 · cited by 2
The research models long-run macroeconomic effects of negative interest rates and notes that the availability of cash plays a key role in driving asymmetric behavioral and policy responses.