Optimal Payment Arrangement in a Cash‐Less Monetary Economy
Journal of money credit and banking
Published online on June 03, 2026
Abstract
["Journal of Money, Credit and Banking, EarlyView. ", "\nAbstract\nWe consider a payment arrangement in which transfers and holdings of currency, but not of real resources, can be recorded and traced by monitoring technology. We show that this payment arrangement improves upon traditional cash payments, allowing transfers of currency among strangers, which can be interpreted as monetary loans."]