Should We Subsidize the Use of Currency?
Article
Economic Quarterly: Should We Subsidize the Use of Currency?
Should We Subsidize the Use of Currency?
Should We Subsidize the Use of Currency?
Winter
1993
Should We Subsidize the Use of Currency?
Jeffrey M. Lacker {jeflac1}
<p>Although it is costly to process deposits of used currency and to replace unfit notes with new notes, the Fed performs these tasks free of charge. Economic efficiency suggests that the Fed should charge a currency deposit fee and should remove rationing constraints on currency deposits and withdrawals.</p>
/RichmondFedOrg/publications/research/economic_quarterly/1993/winter/pdf/lacker.pdf
Payments & Policy
1
Currency
Payments
<p>Although it is costly to process deposits of used currency and to replace unfit notes with new notes, the Fed performs these tasks free of charge. Economic efficiency suggests that the Fed should charge a currency deposit fee and should remove rationing constraints on currency deposits and withdrawals.</p>
Economic Quarterly
Winter
1993