7  The literature on substitution between cash and deposits at the lower bound, and on technical devices which can push the “physical” lower bound down, starts with the proposal by Gesell (1911) to attach stamps to banknotes to accelerate their demurrage. It was revived by Goodfriend (2000) and Buiter and Panigirtzoglou (2001) and more recently by Agarwal and Kimball (2015).
See Gesell S., Die Natürliche Wirtschaftsordnung, 1911, published by Rudolf Zitzman Verlag, 1949; Fisher, I. “Stamp scrip”, Adelphi Company, 1933; Buiter W. and N. Panigirtzoglou, “Liquidity traps: How to avoid them and how to escape them,” in W. Vanthoor and J. Mooij (Eds. ), Reflections on Economics and Econometrics, Essays in Honour of Martin Fase, De Nederlandsche Bank, 2001, pp.