Monday , January 22 2018
Home / EconLog Library / Rogoff on How to Deal with Emergencies Without Cash

Rogoff on How to Deal with Emergencies Without Cash

Summary:
As noted in my previous post, I was discussion leader at a recent colloquium on moving towards a cashless or less-cash society. Here are some quotes from Rogoff, followed by questions I asked. Rogoff:Certainly, a lot of the angst over electronic currency comes from deeply rooted fears of digital theft and paralysis after a major power outage.He goes on to say why he thinks this won't be a big problem. What about a long emergency? Rogoff writes:In a sufficiently prolonged emergency when there is no longer any way to recharge cell phones and supplies of small bills are depleted, the government can air-drop currency for temporary use, redeemable for electronic currency after the crisis.I asked:(i) Has

Topics:
David Henderson considers the following as important:

This could be interesting, too:

Don Boudreaux writes Some Links

Scott Sumner writes Japan doesn’t need easier money; the BOJ needs easier money

Tyler Durden writes Lacy Hunt On The Unintended Consequences Of Federal Reserve Policies

Tyler Durden writes How To Survive Today’s Bubbly Market

Rogoff on How to Deal with Emergencies Without Cash

As noted in my previous post, I was discussion leader at a recent colloquium on moving towards a cashless or less-cash society. Here are some quotes from Rogoff, followed by questions I asked.

Rogoff:

Certainly, a lot of the angst over electronic currency comes from deeply rooted fears of digital theft and paralysis after a major power outage.

He goes on to say why he thinks this won't be a big problem.

What about a long emergency? Rogoff writes:

In a sufficiently prolonged emergency when there is no longer any way to recharge cell phones and supplies of small bills are depleted, the government can air-drop currency for temporary use, redeemable for electronic currency after the crisis.

I asked:
(i) Has any government ever air-dropped currency? If so, how well did that work out?
(ii) Can the government be trusted to do this well and at the right time?

One monetary economist answered the first question: if I recall correctly, the only case he knew of where a government air-dropped currency was the British government air-dropping counterfeit Germany currency in Germany.



David Henderson
David Henderson is a British economist. He was the Head of the Economics and Statistics Department at the OECD in 1984–1992. Before that he worked as an academic economist in Britain, first at Oxford (Fellow of Lincoln College) and later at University College London (Professor of Economics, 1975–1983); as a British civil servant (first as an Economic Advisor in HM Treasury, and later as Chief Economist in the Ministry of Aviation); and as a staff member of the World Bank (1969–1975). In 1985 he gave the BBC Reith Lectures, which were published in the book Innocence and Design: The Influence of Economic Ideas on Policy (Blackwell, 1986).

Leave a Reply

Your email address will not be published. Required fields are marked *