A central bank only issues banknotes denominated in a relatively small amount. For example, until 2012, the central bank of China did not issue any banknotes with a higher denomination than 100 yuan – equivalent to around EUR 12. According to the bank itself, the main reason for this measure is concern about counterfeiting. Larger sums can be paid by bank transfer or card. – It is also believed to keep perceived inflation in check, and various studies seem to confirm the success of the measure. – See Bridge-Abney phenomenon, Counterfeit money, Third pillar, Inflation expectations, Mundell-Tobin effect.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/