tag:blogger.com,1999:blog-6704573462403312459.post4290191704126016576..comments2024-03-28T06:53:23.473-04:00Comments on Moneyness: The big ol' €500JP Koninghttp://www.blogger.com/profile/02559687323828006535noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6704573462403312459.post-90160343284932046492018-01-31T09:06:07.150-05:002018-01-31T09:06:07.150-05:00So if everyone wants to bring their notes in very ...So if everyone wants to bring their notes in very quickly, the fee will rise to dissuade them? And if everyone wants to wait till the last minute, the central bank will actually pay them a bounty to bring them in quicker?JP Koninghttps://www.blogger.com/profile/02559687323828006535noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-5132312313580229592018-01-30T21:24:00.187-05:002018-01-30T21:24:00.187-05:00Let us consider a slightly different method for t...Let us consider a slightly different method for the ECB to eliminate the big note, make one small modification. Announce the note is no longer valid at some date certina, say one year? The ECB will buy them at par with smaller notes. But, the ECB will add a conversion fee, positive or negative, such that the trend return for the year is linear. This is a futures market, traders knowing they have to dump their notes will watch the trend line, relative to ECB contract, and selectively return the notes when the fee is good. Then we would get a random, and bound variation in the fee, about zero. The big notes trashed at the contracted rate.<br />Matt Younghttps://www.blogger.com/profile/08404998406161097199noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-3278448136364664422018-01-30T09:54:32.211-05:002018-01-30T09:54:32.211-05:00Hi Jonathan, it's really difficult to get info...Hi Jonathan, it's really difficult to get information on how central banks use serial numbers. I'm going to assume that yes, they do record serial numbers of notes destined to be destroyed... using machines that can quickly read them. They would cross check these against the list of issued serial numbers. And I'm sure there are a few central banks that are even more active in tracking serial numbers.JP Koninghttps://www.blogger.com/profile/02559687323828006535noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-62046432897515092882018-01-30T08:26:34.207-05:002018-01-30T08:26:34.207-05:00Weird technical question....
Presumably when a €50...Weird technical question....<br />Presumably when a €500 is destroyed by the CB its accounts are adjusted. Do they record the serial numbers of the individual notes that have been destroyed? I promise I'm not planning a robbery or theft along these lines http://www.independent.co.uk/news/uk/banknote-thieves-told-to-repay-pounds-12-m-families-extravagant-lifestyle-ends-with-court-order-to-1372676.html - just wondered. MBGhttps://www.blogger.com/profile/18404729484594219550noreply@blogger.com