The Economic Method

One for the purist - it seems that three -quarters of Britain's banknotes have gone missing. In short, they're no longer in circulation, and either stashed away or funding the shadow economy. 

It highlights the declining need for cash in the economy, the role of reserve currencies and might get you thinking about whether the UK wants to think about adopting the same attitude to this as India did. Clue: it shouldn't.

Just an interesting article about banknotes, with the majority of the world's banknotes printed outside the borders of the country using them. This is, in part, prompted by a recent event in Liberia where the Liberian government lost $104m that had been printed overseas.

That smacks of something similar that stoked Congolese hyperinflation, nearly 20 years ago, when widescale abuse of the knowledge of which notes were being printed meant that a given run of notes was printed up to ten times. You might have a think about how this might impact inflation - perhaps using the Fisher equation?