Follow the money!
Economists at the European Central Bank (ECB) have looked into a mystery.
As the economy collapses and currency transactions decrease proportionately, the amount of banknotes in circulation has never been greater.
In 2020, some 141 billion euros of new banknotes were issued by the Frankfurt institution, more than double compared to the two previous years.
We can say that the printing press really worked.
This brought the money supply in cash in circulation to 1,435 billion euros, an increase of 11% in one year, compared to a usual rate of 5% each year.
Where are these mountains of cash going?
This is "The banknote paradox
",
from the title of a study published by Alejandro Zamora-Perez on the ECB's website to
"understand the demand for cash beyond the use in transactions".
Because, parallel to this craze for hard cash, their use continues to decline!
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