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It also discusses implications for U.S. policy.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/research-report/","Research & Report",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/where-is-all-the-us-currency-hiding-john-b-carlson-and-benjamin-d-keen-economic-commentary/324504/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/where-is-all-the-us-currency-hiding-john-b-carlson-and-benjamin-d-keen-economic-commentary/324504.png","ImageObject",300,407,{"name":42,"@type":43},"Finn","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-08","2026-09-21",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",6,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"Why do most Americans hold U.S. currency?","Question",{"text":63,"@type":64},"Most Americans hold cash mainly to make payments when checks or credit cards are inconvenient or not accepted. Because currency bears no interest, it is generally held only for transaction needs when no transactions are anticipated.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"What makes the U.S. dollar attractive to foreigners?",{"text":68,"@type":64},"Foreigners prefer the dollar for its store-of-value qualities, including relative stability of purchasing power, wide acceptance, and reasonable security against counterfeiting. Federal Reserve Notes are also exchangeable at full face value, and small shipments below $10,000 avoid reporting.",{"name":70,"@type":61,"acceptedAnswer":71},"How can foreign currency demand affect U.S. economic policy?",{"text":72,"@type":64},"If currency demand is driven largely by foreign portfolio decisions, changes in currency outstanding may reveal little about domestic economic activity. It can also alter what monetary aggregates signal and reduce the Treasury’s need to issue interest-bearing alternatives.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},324504,1790472721,{"code":4,"msg":82,"data":83},"success",[84,88,92,96,101,105,110,114,119,122,126],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":85,"show_sort_weight":86,"slug":87},"Story & Novel",90,"story-novel",{"id":26,"doc_module":4,"doc_module_name":25,"category_name":89,"show_sort_weight":90,"slug":91},"Literature",80,"literature",{"id":33,"doc_module":4,"doc_module_name":25,"category_name":93,"show_sort_weight":94,"slug":95},"Exam",70,"exam",{"id":97,"doc_module":4,"doc_module_name":25,"category_name":98,"show_sort_weight":99,"slug":100},5,"Comic",60,"comic",{"id":55,"doc_module":4,"doc_module_name":25,"category_name":102,"show_sort_weight":103,"slug":104},"Technology",50,"technology",{"id":106,"doc_module":4,"doc_module_name":25,"category_name":107,"show_sort_weight":108,"slug":109},7,"Healthcare",40,"healthcare",{"id":111,"doc_module":4,"doc_module_name":25,"category_name":29,"show_sort_weight":112,"slug":113},8,30,"research-report",{"id":115,"doc_module":4,"doc_module_name":25,"category_name":116,"show_sort_weight":117,"slug":118},9,"Religion & Spirituality",20,"religion-spirituality",{"id":117,"doc_module":4,"doc_module_name":25,"category_name":120,"show_sort_weight":117,"slug":121},"World Cup","world-cup",{"id":123,"doc_module":4,"doc_module_name":25,"category_name":124,"show_sort_weight":123,"slug":125},10,"Lifestyle","lifestyle",{"id":127,"doc_module":4,"doc_module_name":25,"category_name":128,"show_sort_weight":97,"slug":129},19,"General","general",{"code":4,"msg":82,"data":131},{"doc_id":79,"user_id":132,"nickname":42,"user_avatar":133,"doc_module":4,"category_id":111,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":55,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":97,"language":139,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":12,"update_tm":143,"read_time":144,"preview_page_count":4},34359740700684,"https://ap-avatar.wpscdn.com/avatar/1f400023980c374ae676?_k=1777273430885731487","# Where Is All theU.S.Currency Hiding?\n\nby John B.Carlson and Benjamin D.Keen  \nTne total amount ofUS.curencyheld by the nonbank public equals about$375 billion,or nearly $1,400 for everyman,woman,and child in the country.Clearly,few individuals ever hold thismuch cash at any point in time.On thesurface,the sheer volume of currencyoutstanding seems inconsistent withcommon sense.Even if one considerscurrency balances held by businessesinvolved largely in cash transactions—like retailers—and by participants inthe underground economy—like drugdealers—it is hard to reconcile the dif-ference between households'holdingsand total currency outstanding.So whereis this currency hiding?  \nRecent evidence suggests that a growingproportion of U.S.currency is held out-side the country by individuals who areuncertain about their own currency'sfuture value.To these people,the dollaris a refuge during times of political andeconomic uncertainty.Knowing pre-cisely how much currency is held out-side the United States,however,is nosimple matter.Unlike checking ac-counts,currency flows do not leave apaper trail.However,informal reports tothe Federal Reserve and the U.S.Cus-toms Department regarding currencyflows abroad do provide a rough indica-tor of foreign demand.  \nHaving some idea about the magnitudeof overseas holdings is important forseveralreasons.First,if the demand forcurrency is becoming driven largely byforeign portfolio decisions,then fluctua-  \ntions in the level of currency outstandingmay have little to do with domestic eco-nomic activity.Second,movements inthe narrow monetary aggregates—ofwhich currency is a sizable component—will not provide the same informationas they have historically.Third,to theextent that foreigners demand currency,which is non-interest-bearing debt,theU.S.Treasury's need to issue an interest-bearing alternative is reduced.  \nTo address these issues,we will examinewhy individuals hold currency and whythe U.S.dollar is so popular abroad.Wewill also discuss some recentresearch onthe share of currency held abroad andlook at the implications for policy.  \n# ■ Why Do People\n\nHold Currency?  \nFor most Americans,the answer to thisquestion is simple:to make paymentswhen neither checks nor credit cards areconvenient or accepted.The U.S.dollarhas the textbook qualities often used todefine money.That is,it is both a unit ofaccount and a medium of exchange.Although stories about currency stashedunder the mattress occasionally come tolight,most Americans choose to holdcash only for transaction purposes.Sinceit bears no interest,there is little incen-tive to hold currency when no transac-tions are anticipated.  \nTextbooks also identify\"store of value\"as a quality of money.This characteris-tic,however,applies to many nonmone-tary assets as well.During inflationary  \nApril 15,1996  \nA recent Federal Reserve Board studyrevealed that between 50 and 70 per-cent of all U.S.currency is heldabroad,and that about 80 percent ofll currency growth since 1980 isattributable to increased foreigndemand.In this Economic Commen-tary,the authors take a look at whythe dollar is so popular outside ourborders and discuss the implicationsof rising currency demand for U.S.economic policy  \nperiods,houses are often consideredgood stores of value.Gold,rare art,coins,and stamps can also serve thispurpose.  \nThe dollar,on the other hand,has somecharacteristics that make it preferable toother stores of value.First,it is bothcompact and portable.One can barelymove a house across town,let aloneabroad.Even carrying gold can be cum-bersome.Second,currency affordsanonymity not offered by,say,owner-ship of a Van Gogh.Third,the U.S.dol-lar is liquid in many parts of the world.That is,it is easily converted to spend-able forms with no(or minimal)transac-tion costs and little risk of capital loss.And finally,unlike most real property,currency is divisible.If the denomina-tion of a bill is larger than the price of anexchange,then change can be made  \n1959  \n# ■","cbCaiqDRyM3PtrBd","https://ap.wps.com/l/cbCaiqDRyM3PtrBd","pdf",1160526,"English","# Why Do People Hold Currency?\n## Transaction purposes and characteristics of money\n# Why Do Foreigners Hold U.S. Currency?\n## Store-of-value, security, exchangeability, and anonymity\n# Trends in Foreign Holdings of U.S. Currency","[{\"question\":\"Why do most Americans hold U.S. currency?\",\"answer\":\"Most Americans hold cash mainly to make payments when checks or credit cards are inconvenient or not accepted. Because currency bears no interest, it is generally held only for transaction needs when no transactions are anticipated.\"},{\"question\":\"What makes the U.S. dollar attractive to foreigners?\",\"answer\":\"Foreigners prefer the dollar for its store-of-value qualities, including relative stability of purchasing power, wide acceptance, and reasonable security against counterfeiting. Federal Reserve Notes are also exchangeable at full face value, and small shipments below $10,000 avoid reporting.\"},{\"question\":\"How can foreign currency demand affect U.S. economic policy?\",\"answer\":\"If currency demand is driven largely by foreign portfolio decisions, changes in currency outstanding may reveal little about domestic economic activity. It can also alter what monetary aggregates signal and reduce the Treasury’s need to issue interest-bearing alternatives.\"}]","Where Is All the U.S. Currency Hiding? - John B. Carlson and Benjamin D. Keen - Economic Commentary | PDF",1789968092,13]