Abstract

We use two estimation methods to clarify the amount of cash kept under the nontransaction. The first method is the banknote approach by denomination type, which focuses on the characteristics of each type of banknote. The second method is the seasonal adjustment approach, which focuses on seasonal fluctuation in demand for banknotes. The results of estimation the amount of cash kept under the nontransaction using these methods are surprising. We clarify that more than 50% of the banknotes in circulation in the public were kept under the not for transaction reasons.

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