Each year we use less cash in daily transactions, but at the same time the amount of banknotes in circulation inside the Eurozone is increasing at a rapid rate. Last year, the total value of all banknotes in circulation reached €1,08 trillion, an increase of 6,5% compared to the year before. The total value of all banknotes in circulation in fact doubled in ten years, in increase that could only partially be explained by inflation and the entrance of new member states to the Eurozone.
More than €1 billion of banknotes inside the Eurozone
More cash in circulation
What explains the increasing demand for banknotes? It could be the result of a growing black market economy, in which goods and services are paid for in cash and cannot be traced afterwards. But in recent years, distrust towards banks and the extremely low interest rate could also explain the flight to cash. Persistent rumors of a possible tax on savings, the new ‘bail-in’ scheme for European banks and the fact that you earn almost no interest on bank deposits make it more attractive to keep savings in the form of cash. We can also imagine people wanting to get out of the financial system by holding cash and buying gold.
Savings
The ECB publishes the number of banknotes in circulation inside the Eurozone, so we collected the data since the introduction of the euro in 2002. The graphs show that there has been a substantial increase in the €500 denomination, which confirms our view that there has been in increasing number of savers taking money out of banks and holding physical banknotes instead. Banknotes of €500 are not suitable for daily transactions, because most stores simply do not accept them. The increase of the largest denomination suggests that savings are already moving out of the banking system in increasing amounts.
The €500 banknotes appear to be in strong demand
Almost 30% of all cash in circulation (in value) is a €500 note
50 gedachten over “Flight to cash in the Eurozone”
Working With a1031 Exchange There are several ways to benefit off of owning property and being involved in real estate. Not only does this come from finding the right property, loans and people to work with, but also moves into [read more..]
Buying a new bed So you are browsing the market for a new bed. Super, but remember that during the average 10-year lifespan of a bed you will spend about 29,000 hours in it. So it pays to be cautious while purchasing [read more..]
Basic Trailer Maintenance The trailers we use to haul our boats, horses, equipment and other toys are one of our most overlooked and under maintained possessions. We rarely think about them until we need to take our boat out t [read more..]
The Benefit Of Yoga Yoga, and the benefit of yoga, is generically defined as a Hindu discipline that helps unite the body and mind. Aimed at achieving a state of perfect spiritual insight and tranquility, it is practiced [read more..]
The True Story of The American Independence Their peace, tranquility, and respective modes of concentration were broken by the excited entry of a royal messenger. You could be excused for thinking that he had arrived over 200 years early for an [read more..]
Kazakhstan and its beautiful women pIt's a common knowledge, that every nation has its peculiarities. However some world's regions differ much from each other by the appearance of people, uniqueness of the culture, philosophy [read more..]
Rubber Stamping Cards The art of rubber stamping is something that is not new to everyone Fact is, it has been around for centuries now and that thousands of people from different areas in the world have already tried the craft. Many artists have in fact developed their own art works thr [read more..]
Time Management: The key to a stress-free life One of the main causes of being stressed out in the office is lack of time for other important things outside work. Being so career-driven, an busy worker can even lose his touch with time…losing t [read more..]
TNC industrial name plates stands where no one can thinks of a hold You can always affiliate the quality of your product with a presentable brand label. The industrial name plates give brand Identification to your product. Texas Nameplate offer innovative styles in us [read more..]
Toy Guns One of my favorite things to play with when I was a kid was my cowboy outfit. It consisted of a cowboy hat, suede waistcoat and a six-shooter in a holster. I used to practice my quick draw in front of [read more..]
Mumbai Real Estate is at an all time High The metropolitan city of Mumbai is seeing a high time real estate boom. It reflects the growing real estate sector of India. There is a considerable increase in demand and supply and an appreciation i [read more..]
What Is Blogging – A Simple Explanation With the recent rise in advanced social networking websites like MySpace, FaceBook, and Xanga, where the young and would-be cool like to spend their time, much in the way they congregate at their loca [read more..]
Internet Marketing: Effectively Dealing With Deadlines Understanding deadlines not only in your work at home business but in your life in general is critical to the success of your business, your health, the quality of your life and your happiness. We wil [read more..]
How Do I Know If I am Eligible For Student Loan Debt Consolidation If you are a parent sending your child off to college or if you are a student going to college for the first time, you are probably cringe whenever you receive a tuition bill in the mail–or when you [read more..]
Purple Accessories Soothe Your Feeling Summary: Purple bath accessories are very effective as far as creating a soothing mood to everyone Bathroom plays an important part of our life it serves as our place to have privacy. For most people it is more important than our bedroom. Do you agree? I do. Bathroom for me is the place where I can [read more..]
Legal Pitfalls of Arranging a Mortgage Copyright 2006 Tracey AndersonA mortgage is often the biggest commitment a person undertakes, and one should take time to consider all of the legal and financial details before diving head-first into [read more..]
Ice Hockey In Even if ice hockey is believed to be born and raised in , it is passionately adopted by the Swiss like it was a sport especially designed for them A lot of people are now considering as a great place for ice hockey. And why not? If skiing can be done all throughout the year, why not ice hockey? Its a known fact that is well-known for its winte [read more..]
Car Hire In Nice The stylish French city of Nice is situated on the southern coast of the French Riviera. Nice has long been a popular destination for both summer vacations and short city breaks and offers excellent s [read more..]
Youtube And Marketing Opportunities For Home Based Internet Businesses More and more people are turning to online media in order to promote their home-based internet businesses. While blogging and e-zine marketing are effective forms of promotion for your business, anoth [read more..]
The Importance Of Drinking Filtered Water We see them every time we leave the house or we may even be a part of it the water bottle brigade; one of the numbers of busy professionals walking the streets with briefcase, cell phone, and bottle [read more..]
An Article Writing Philosophy – Do You Have One Thousands of articles about writing articles are bouncing all over the internet and the printed media at any given time. Most of these articles are tips and advice, a few are about grammar and clarity [read more..]
26 Common Misuses of Pacifiers Experts have voiced valid concerns regarding the use (and abuse) of pacifiers. Not only can pacifiers cause nipple confusion in an infant, it is also associated with premature weaning. A newborn infa [read more..]
Thematic Website Optimization – Surpass Your Page Rank Limitation And Acquire Top SERP Groundbreaking "Thematic Website Optimization Technique" will elude Google page ranking criteria on search engine organic search algorithm. Wait no longer to get your website rank high in ma [read more..]
Life Insurance Services Article Database Information10 key reasons why a person needs life insuranceInsurance is designed to protect a person and the family from disasters and financial burdens. There are many kinds of insur [read more..]
Why Advertisers support Adsense Google is the biggest search engine on the web. It controls over 40 of Internet searches, and with that it controls pay per click advertising (pay per click). PPC involves the advertiser paying a rate [read more..]
Grab That Photoshop CS Tutorial Photographs have a way of fascinating people. The vibrant colors and the ideas conveyed can surely mean a lot to those who get to appreciate it. Technology has even given people the opportunity to imp [read more..]
Saddles and Horse Blankets They would seem to be a team anywhere, the saddles and horse blankets. Western saddles and horse blankets are a necessary couple. Not all saddles require the use of a horse blanket. Indeed, there i [read more..]
Learning to listen to your body One of the most important ways for you to become a healthy person is to learn to listenclosely to what your body tells you, to recognize what it needs and desires in order to feel fit and comfortable [read more..]
Adventure Travel Safety Tips Thousands of people throughout the world today are considering adventure travel for several good reasons Most of them want to simply discover the hidden secrets of a certain place, while others want to experience a new taste of culture and beliefs. They want to meet new people, learn new language, or si [read more..]
GENERAL TENNIS PSYCHOLOGY Tennis psychology is nothing more than understanding the workings of your opponent's mind, and gauging the effect of your own game on his mental viewpoint, and understanding the mental effects re [read more..]
Phage In The Food Food is one of the core necessities of life and has often been hailed, along with music, as a universal language. No culture or civilization is without a means of preparing meals, instilling the same [read more..]
Why A Little Bit Of Marketing Does You Good, Especially At Christmas My grandpa, whos a Quaker, used to disapprove of the fact that I ventured into marketing, but hes coming round to my way of thinking, even at the grand age of 92. He is suspicious of marketing (in his [read more..]
Patent US KWD: 15472 3.17Patent USPatent US gives inventor exclusive rights on the invention. The exclusive rights will prevent others to make, use, import, sell or offer to sell the invention without the inve [read more..]
Blogging For SEO If youve never heard the term SEO, let me explain briefly what it is, what it does and what its for.SEO is the abbreviation for Search Engine Optimization. This is a web design technique that, when do [read more..]
Contract Formation Contract law is one of the most important area of the law that affects us all in our daily lives. Although we seldom sign a written document, we go into shops daily, we travel on public transport, we [read more..]
Peru wants archeology back from Yale Rising proudly at over 7500 feet high ( 2300 meters ), Inca citadel of Machu Picchu was so inaccessible that the Spanish conquerors were never able to found it. But in 1911 Yale historian Hiram Bingha [read more..]
Discover Why Most People Fail To Quit Smoking And How To Overcome It Occasionally, you would hear the same old stories, on how people would just quit for 1, 2 or 3 weeksmonths even years, and then return to the old habit. Not only that, they will come back and smoke e [read more..]
Tips for Planning a Trip to Woodinville Wine Country Do you enjoy drinking wine? Would you even go as far to say that you a wine enthusiast? If you so, you may be interested in taking a trip to wine country. If a trip to wine country interests you, y [read more..]
Effective SEO Comes Cheap Search engine optimization or SEO is the hottest way to drive targeted traffic to your website. Maximizing the benefits of a well-SEO'ed website will yield lots of earnings for the marketer. Howe [read more..]
Does Weight Loss Medication Really Work When combined with a reduced-calorie diet and regular physical activity, weight loss medicines can help people struggling with their weight, to lose weight over a consistent period of time. People who [read more..]
Make your resource box an ICBM and explode your clicks Over recent years many people have learned the secrets of Search Engine Optimization. More and more sites have seen the effects article submissions have done for the traffic flow to their sites. Some [read more..]
How about a Bournemouth Stag Night If you are looking for a destination with sun, sand and sea for your stag do, and are looking for a destination in Great Britain rather than overseas, the you ought to think about contemplating the [read more..]
Learning French The Easy Way Planning to learn a new language? Great idea! After English, French is the most popular language used all over the world. Not only is it popular, but French is also often used in high societies and ro [read more..]
Lawsuit Loan Companies Litigation can be extremely expensive, and occasionally even people who have strong cases simply cannot afford to start a lawsuit. Lawsuit financing can help by providing some funds. Companies that p [read more..]
What Tools Do I Need For Cake Decorating When you begin cake decorating, you can get by with a heavy duty mixer, icing tips, icing bags, cake pans, ready made or recipes for homemade royal icing, mixing bowls, spatulas, and metal icing spatu [read more..]
The Chameleon Of Flowers: Mums The Word The Chrysanthemum, commonly referred to as Mum, has evolved from an ancient Chinese remedy plant to the corsage on every high school girls wrist at Homecoming dances and every species in between. Now, [read more..]
Child Safety Planning Many people think that child safety does not need to be worked on or something that can be done in just a matter of clicks Child safety is every parents and guardians responsibility. It is a responsibility that demands as much attention and commitment as possible. And it is for this reason specifically that the concept [read more..]
America’s ‘Mane’ Attraction: The Golden Age of Horses More Americans are learning why riding off into the sunset equals living "happily ever after."With recent movies such as "Seabiscuit" and "Hidalgo" topping the charts, it [read more..]
Natural Remedies for Losing Weight – Exiliss Research proved if you reduce your weight by just 10 per cent of your total weight you immediately benefit in a variety of ways. For instance, If you are overweight or obese, you increase your risk o [read more..]
What is Web Hosting A web hosting service provides a service that allows individuals and businesses to post web pages to the internet. A web hosting service provider sells or for free (with advertisements on the web page [read more..]