Does Banknote Quality Affect Counterfeit Detection? Experimental Evidence from Germany and the Netherlands
59 Pages Posted: 17 Feb 2016
Date Written: February 1, 2016
Counterfeit prevention is a major task for central banks, as it helps to maintain public confidence in the currency. It is often maintained that a high quality of the banknotes in circulation helps the public detect counterfeits. However, there has not been any scientific evidence in support of this assertion so far. The present study is a first attempt to fill this research gap.
Keywords: banknotes, counterfeits, banknote quality, signal detection theory
JEL Classification: E40, E41, E50, E58
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