# Low-value banknotes only

- Canonical URL: https://www.gerhardmerk.de/low-value-banknotes-only
- Post ID: 593096
- Modified: 2023-07-25T21:03:23+00:00
- Language: en

## Definition

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. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! 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/

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