Template-type: ReDIF-Paper 1.0
Author-Name: Katrin Assenmacher
Author-Name-First: Katrin
Author-Name-Last: Assenmacher
Author-Person: pwe101
Author-Name: Franz Seitz
Author-Name-First: Franz
Author-Name-Last: Seitz
Author-Person: pse253
Author-Name: Dr. Jörn Tenhofen
Author-Name-First: Jörn
Author-Name-Last: Tenhofen
Author-Person: pte292
Title: The demand for Swiss banknotes: some new evidence
Abstract: Knowing the part of currency in circulation that is used for transactions is important information for a central bank. For several countries, the share of banknotes that is hoarded or circulates abroad is sizeable, which may be particularly relevant for large-denomination banknotes. We analyse the demand for Swiss banknotes over a period starting in 1950 to 2017 and use different methods to derive the evolution of the amount that is hoarded. Our findings indicate a sizeable amount of hoarding, in particular for large denominations. The hoarding shares increased around the break-up of the Bretton Woods system, were comparatively low in the mid-1990s and have increased significantly since the turn of the millennium and the recent financial and economic crises.
Length: 27 pages
Creation-Date: 2019
Contact-Email: forschung@snb.ch
File-URL: https://www.snb.ch/en/publications/research/working-papers/2019/working_paper_2019_02
File-Format: text/html
Number: 2019-02
Classification-JEL: E41, E52
Keywords: Currency in Circulation, Cash, Demand for Banknotes, Hoarding of Banknotes, Banknotes Held by Non-residents
Handle: RePEc:snb:snbwpa:2019-02