To broaden the scope of monetary policy, cash abolishment is often suggested as a means of breaking through the zero lower bound. However, practically nothing is said about the welfare costs of such a proposal. Rösl, Seitz and Tödter argue that the welfare costs of bypassing the zero lower...

To broaden the operational scope of monetary policy, several authors suggest cash abolition as an appropriate means of breaking through the zero lower-bound. We argue that the welfare costs of bypassing the zero lower-bound by getting rid of cash entirely are analytically equivalent to negative...

Following a monetary growth rate rule, the present paper ranks four simple monetary rules under various stochastic shocks. The criteria to choose among rules are obtained using a welfare criterion derived from the utility function of the representative agent. The main results are: the effects of...