Show me the money
Source: blogs.guardian.co.uk. Posted on 15 April 2006.
Four years after the introduction of the euro, the demand for euro banknotes has remained surprisingly high, the European Central Bank reported in its 200-page monthly bulletin.
Part of this has to do with demand for euros from outside the eurozone, no doubt to do with holidaymakers leaving the zone with wads of cash they can use the next time they're in Tuscany or Provence.
Another reason cited by the ECB is low interest rates. When interest rates are low, there is little incentive for people to invest, so the tendency is to hoard cash. For example, if bonds offer low interest rates, investors will see little point in putting money into these financial instruments and prefer instead the convenience of cash.
