Remittances from the USA per inhabitant of home country
|January 29th, 2019 at 7:22:18 AM permalink|
Member since: Oct 24, 2012
For the USA in
2006 there was $783.5 billion in banknotes and coins for a Gross Domestic Product of $13,684.7 billion (an increase of 87%)
2016 there was $1,463.4 billion in banknotes and coins for a Gross Domestic Product of $18,407.4 billion (an increase of 35%)
So the USA is increasing its currency in circulation at a rate faster than the general economic growth. Most people think that electronic transactions are replacing physical banknotes and coins, but the question remains about the massive increase in cash. Furthermore nearly every country in the world is increasing their supply of banknotes and coins faster than general economic growth.
The exception seems to be Scandinavia. Although all three countries have issued a new series of banknotes in the last decade with the latest anti-counterfeiting devices, they have to order them from secure paper firms in other countries. Denmark began issuing new series on 11 August 2009, Sweden began issuing new notes on 1 October 2015, Norway began issuing new notes on 30 May 2017.
Sweden is radically reducing (-44%) the value of the circulating supply of banknotes and coins despite having the large GDP growth of the three countries, Norway is only slightly reducing (-2.4%) the amount and Denmark is permitting relatively modest increases (+20%) compared to the rest of the world.
The three Scandinavian countries have done this by encouraging widespread adoption (over 50%) of the same commercial bank phone app in each country which permits you to make instant transfers from bank account to bank account. Businesses are starting to accept this phone app to make small purchases where you probably wouldn't use a credit card. Today many people don't carry any cash at all.
Sweden's banknotes are made in Britain, and Norway and Denmark have banknotes made in France. All three countries have their coins minted in Finland. It is an open question if this trio of new series will be the last issued by their respective countries.