Český finanční a účetní časopis 2013(3):62-72 | DOI: 10.18267/j.cfuc.358

Currency in Circulation: Reaction in Crises

Jan Cimburek1, Pavel Řežábek2
1 Ing. Jan Cimburek, LL.M. - poradce člena bankovní rady; Česká národní banka, Na Příkopě 28, 115 03 Praha 1; <jan.cimburek@cnb.cz>.
2 Ing. Pavel Řežábek, Ph.D. - člen bankovní rady; Česká národní banka, Na Příkopě 28, 115 03 Praha 1; asistent; Katedra hospodářské a sociální politiky, Národohospodářská fakulta, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3; <pavel.rezabek@cnb.cz>.

Study analyzes behavior of payment instruments users in the case of crises on the Czech Republic data. Based on the decomposition of cash demand for transactions and hoarding demand used with the help of available data and selected indicators (nominal value decomposition, banknotes in circulation average value, interannual cash cycle comparison or cash to GDP ratio) this study confirms research question that cash fulfills its role of safe and liquid asset and qualitative factors of cash demand have a significant impact on the demand for cash in circulation and its emission especially in the times of crises.

Keywords: Currency in circulation; Cash demand; Financial crisis; Banknotes.
JEL classification: E40, E50

Published: October 1, 2013  Show citation

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Cimburek, J., & Řežábek, P. (2013). Currency in Circulation: Reaction in Crises. Czech Financial and Accounting Journal, 2013(3), 62-72. doi: 10.18267/j.cfuc.358
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