The Curse of Cash

Written by Kenneth S. Rogoff

Narrated by Barry Abrams

The world is drowning in cash-and it's making us poorer and less safe. In The Curse of Cash, Kenneth S. Rogoff makes a persuasive and fascinating case for an idea that until recently would have seemed outlandish: getting rid of most paper money.

Even as people in advanced economies are using less paper money, there is more cash in circulation-a record $1.4 trillion in U.S. dollars alone. So what is all that cash being used for? The answer is simple: a large part is feeding tax evasion, corruption, terrorism, the drug trade, human trafficking, and the rest of a massive global underground economy.

As Rogoff shows, paper money can also cripple monetary policy. In the aftermath of the recent financial crisis, central banks have been unable to stimulate growth and inflation by cutting interest rates significantly below zero for fear that it would drive investors to abandon treasury bills and stockpile cash.

The Curse of Cash offers a plan for phasing out paper money and addresses the issues the transition will pose, ranging from fears about privacy and price stability to the need to provide subsidized debit cards for the poor.

• Language: English
• Publisher: Tantor Media, Inc
• Release date: Sep 7, 2016
• ISBN: 9781515979524

Reviews for The Curse of Cash

[rivkat_2 · Rating: 4 out of 5 stars]

Rogoff argues that, without cash, we’d have a lot less crime, including tax evasion, because the relative cost of avoiding detection would go up. That sounds really interesting, but Rogoff is actually much more interested in the prospect of negative interest rates, which don’t work really well unless it’s difficult for citizens to pile up cash outside of banks. Negative interest rates can be used by central banks to spur growth and, he argues, give them more flexibility than quantitative easing or fiscal policy. (If you read this book without an already extant grasp of the basics of monetary v. fiscal policy, you will be confused.) In order to protect the poor, he argues for a long transition period for smaller bills as well as free checking accounts set up by the government. I had no idea how much money, especially American money, was pretty clearly being used outside the US, especially the hundreds—probably not for good. The same also appears true of the Euro, but Rogoff argues that even countries whose currencies aren’t globalized could benefit in decreasing tax evasion by eliminating cash, or at least large denomination cash. Intriguing, at the least.