More $100S Than $1S
Trivia inquiry for today: What denomination of U.S. of America currency has the largest break of bills inwards circulation? Up until 2016, the right respond was the $1 bill. Now, it's the $100 bill.
Here's the testify from Tim Sablik inwards "Is Cash Still King?" written for Econ Focus from the Federal Reserve Bank of Richmond (Second Quarter 2018, pp. 18-21). Back inwards the 1990s in addition to into the commencement decade of the 2000s, $1 bills were most common, alongside $20s inwards minute place. (This ranking accurately represents my ain wallet, for what it's worth!). But $100s direct keep increase steadily in addition to taken over commencement place.
Indeed, the full value of U.S. of America currency inwards circulation has been rising over time, simply most of that hit inwards value is due to the rising inwards $100 bills.
Clearly, in that location is a puzzle here. As Sablik points out, testify from consumer surveys finds that cash is used for near 27% of transactions inwards the final decade or so, simply to a greater extent than oft than non for modest purchases. It seems unlikely that the break of $100 bills inwards circulation is near typical consumers making typical purchases. In circular numbers, the 12 billion $100 bills inwards circulation divided past times a U.S. of America population of 325 ane K 1000 implies that on average, every mortal inwards the U.S. of America has 37 $100 bills inwards their possession. The full amount of U.S. of America cash inwards circulation plant out to near $4,800 for every mortal inwards the US. (This does non accurately correspond the contents of my wallet.)
The touchstone explanation is that a considerable amount of U.S. of America currency is beingness used exterior the US, both every bit a medium of central in addition to every bit a shop of value. Some proportion of that amount--no ane actually knows how much--is sure as shooting helping to facilitate illegal activities. There are ongoing proposals to eliminate large-denomination bills: Sablik points out that the EU ended production of 500-euro notes inwards 2016.
For to a greater extent than or less previous posts on the subject, see:
Here's the testify from Tim Sablik inwards "Is Cash Still King?" written for Econ Focus from the Federal Reserve Bank of Richmond (Second Quarter 2018, pp. 18-21). Back inwards the 1990s in addition to into the commencement decade of the 2000s, $1 bills were most common, alongside $20s inwards minute place. (This ranking accurately represents my ain wallet, for what it's worth!). But $100s direct keep increase steadily in addition to taken over commencement place.
Indeed, the full value of U.S. of America currency inwards circulation has been rising over time, simply most of that hit inwards value is due to the rising inwards $100 bills.
Clearly, in that location is a puzzle here. As Sablik points out, testify from consumer surveys finds that cash is used for near 27% of transactions inwards the final decade or so, simply to a greater extent than oft than non for modest purchases. It seems unlikely that the break of $100 bills inwards circulation is near typical consumers making typical purchases. In circular numbers, the 12 billion $100 bills inwards circulation divided past times a U.S. of America population of 325 ane K 1000 implies that on average, every mortal inwards the U.S. of America has 37 $100 bills inwards their possession. The full amount of U.S. of America cash inwards circulation plant out to near $4,800 for every mortal inwards the US. (This does non accurately correspond the contents of my wallet.)
The touchstone explanation is that a considerable amount of U.S. of America currency is beingness used exterior the US, both every bit a medium of central in addition to every bit a shop of value. Some proportion of that amount--no ane actually knows how much--is sure as shooting helping to facilitate illegal activities. There are ongoing proposals to eliminate large-denomination bills: Sablik points out that the EU ended production of 500-euro notes inwards 2016.
For to a greater extent than or less previous posts on the subject, see:
- "Eliminate High-Denomination Bills?" (March 18, 2016)
- "The Soaring Number of $100 Bills" (June 10, 2013)
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