Ken Rogoff wrote recently extolling the virtues of abolishing cash in favour of electronic money in order to escape the zero lower bound, which he prefers to the alternative of raising the inflation target. Targeting higher inflation would 'baffle' the public, he thinks, and would mean that the inflation targets were no longer the 'moral equivalent of zero'.
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Escaping the zero lower bound: electronic…
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Ken Rogoff wrote recently extolling the virtues of abolishing cash in favour of electronic money in order to escape the zero lower bound, which he prefers to the alternative of raising the inflation target. Targeting higher inflation would 'baffle' the public, he thinks, and would mean that the inflation targets were no longer the 'moral equivalent of zero'.