Recent changes in the use of cash

• Demand for cash has recently been growing much more slowly than expected.
• This is difficult to reconcile with the proposition that the 'black economy' has been expanding.
• There are a number of possible explanations for the slower growth: changes in the way consumers make payments, away from cash and towards cheques, are emphasized.
• These changes have been more rapid in the UK than in many other countries; we now use rather less cash in relation to spending levels than other European countries, but still more than North America.
• Such structural changes imply that movements in cash are unlikely to be helpful as a guide to general economic or financial conditions.

Recent changes in the use of cash