Interest rates impact money demand more than previously thought, affecting household finances.
The article discusses how most US households decide whether to use interest-bearing assets. The researchers found that the decision depends on the interest rate and the total assets a household has. By studying households instead of historical data, they discovered that the demand for money doesn't change much with low interest rates. They also found that older people and less educated individuals are less likely to adopt financial technologies. At higher interest rates, the demand for money is influenced by both existing users and new adopters.