Research Discussion Paper – RDP 2018-12 Where's the Money‽ An Investigation into the Whereabouts and Uses of Australian Banknotes

Contents

• Introduction
• Background Data and International Comparisons
• Lost Banknotes
• Cash Used in Legitimate Transactions
• The Shadow Economy
• Hoarding
• Conclusion
• Appendix A: Ground-up Calculations
• Appendix B: Banknote Life Calculations
• Appendix C: Velocity Calculations
• References

The authors would like to thank Ben Fung, James Holloway, Melissa Hope, Tony Richards, John Simon and a number of cash industry participants for useful comments, suggestions and discussions. Any remaining errors are the responsibility of the authors alone. The views in this paper are those of the authors and do not necessarily reflect the views of the Reserve Bank of Australia.