In the years of relatively high inflation rates, the zero lower bound was merely a theoretical notion taken into account when characterising the solutions of monetary models. It has, however, become a concrete concern for monetary policy in the last two decades, first in Japan, then in most other developed economies. Central banks have consequently become interested in the formerly abstract ZLB topic.
And the third camp, the fintech (financial technology) alliance, anticipates major business opportunities arising from the elimination of the high storage, issuance, and handling costs of cash that the financial industry currently faces. But the arguments for going cashless do not withstand scrutiny. Start with the alchemists’ case.