- In this paper, we analyze the volume of Euro banknotes issued by Germany and circulating in other Euro area countries as well as outside the Euro area with a banknotes’ age model. Our approach suggests that about 60% of banknotes, the equivalent of around € 225 billion, is held abroad.
Highlights
► We analyze the volume of Euro banknotes issued by Germany and circulating abroad. ► We use a model of the age of banknotes. ► The model captures demand from other Euro area countries and outside the Euro area. ► About 60% of “German” banknotes (€ 225 billion) are held abroad.