This paper explains and forecasts the demand for banknotes issued in Germany. For small and large denomination notes we … estimate vector error correction models (VECM). The results suggest that the long-run demand for German small denomination … notes is mainly driven by domestic transactions and demand from outside the euro area. The transaction motive in the rest of …

The period from the 1950s to the late 1970s saw an almost uniform decline of cash-to-GDP ratios in industrial countries … incomes. Rising wages increased the burden of weekly wage payments in cash, and rising incomes made the average earner more … than revolutionary, however. So, even though the cash-to-GDP ratio declined in this period, absolute amounts of real cash …

This paper models the demand for banknotes issued in Germany. It highlights that all motives for holding banknotes are …-run demand for German small denomination notes is mainly driven by domestic transactions and demand from outside the euro area …. The transaction motive in the rest of the euro area and non-cash payments are part of the short-term dynamics. The long …

Contrary to predictions that demand for cash will decline with the increased availability and use of non-cash payment … means, currency demand has increased in the Euro area and the US over the past 15 years. Against this background, this short … article summarizes recent findings from Jobst and Stix (2017), who provide a discussion of trends in currency demand, and …

, it is broken down into the components of foreign demand, domestic hoarding and domestic transaction balances. These … banknote demand components are estimated using the direct approach "net shipments and foreign travel" as well as an indirect …