Eliminating Paper Money? Not That Fast, The Government Earns Money On Money Printing!

Bloomberg Money just released below interview with Harvard University Professor Ken Rogoff, author of “The Cure of Cash.”

Mr. Rogoff propagates “less cash”, not necessarily “no cash.” This is a quote from his book:

The simplest way to start would be for governments to cease printing new large-denomination notes … paving the way for unfettered and fully effective negative interest rate policy … a major collateral benefit.

Interestingly, and this definitely does not come as a surprise, the same old argument as the “black market economy” is coming back as an argument to support the “cashless” idea. Even more interesting, Mr. Rogoff refers to the government “making money when printing money”. Now that is an interesting statement. Right at the 2 minute time stamp in the interview, he confesses that he spoke to the Treasury in April where he got that confirmation.

The rest of the interview is a classic conversation about European policy on the cashless society, the global “misuse of currency”, etc.

Listen to the interview:

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