Coin Migration within the Euro Area

32 Pages Posted: 8 Jun 2016

See all articles by Franz Seitz

Franz Seitz

Technical University of Applied Sciences Weiden

Dietrich Stoyan

Freiberg University of Mining and Technology

Karl-Heinz Todter

Deutsche Bundesbank - Research Department

Date Written: 2009

Abstract

This paper analyses how many euro coins outflow from Germany and which composition of coins is to be expected in the long run. To this end, a simple mathematical model is formulated and calibrated for €1 coins. The introduction of the euro coins in 2002 presented a unique opportunity to analyse the cross-border migration and the mixing process of coins in different euro-area countries. Based on research by Stoyan and depending on growth assumptions, the annual outflow of German €1 coins is calculated to lie somewhere between 4% and 5%. In the long run, the ratio of German €1 coins in Germany is likely to converge to around 50%.

Keywords: Euro coins, coin volumes, mixing process

JEL Classification: C61, E41

Suggested Citation

Seitz, Franz and Stoyan, Dietrich and Todter, Karl-Heinz, Coin Migration within the Euro Area (2009). Bundesbank Series 1 Discussion Paper No. 2009,27, Available at SSRN: https://ssrn.com/abstract=2785356

Franz Seitz (Contact Author)

Technical University of Applied Sciences Weiden ( email )

Hetzenrichter Weg 15
D-92637 Weiden i.d. Opf
Germany
(49) 961-382-1318 (Fax)

Dietrich Stoyan

Freiberg University of Mining and Technology

Lessingstrasse 45
Freiberg, 09599
Germany

Karl-Heinz Todter

Deutsche Bundesbank - Research Department ( email )

PO Box 10 06 02
D60006 Frankfurt
Germany

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