How would consumers in America function without paper currency?
Miles Kimball, Professor of Economics at the University of Michigan, advocates the switch from paper to electronic currency.
“The thing you want to do is make it so we can stimulate the economy with monetary policy. A lot of people don’t realize that the reason we’ve had such a long recession is because the Federal Reserve was not able to lower the interest rate because of the way our system uses money. If you tried to make the interest rate negative, which would be what is needed to stimulate the economy, then people would just keep money under the mattress. Because of that, the Federal Reserve is not able to lower the interest rate low enough to get the economy moving.”