Resumen de Some stylised facts about cash and black economies in Germany

Gerhard Graf

• The currency approach assumes black economies to entail larger cash volumes than those needed for transactions in the official economy. Estimates of this hypothesis use e.g. overall cash data. But, for the case of Germany, the growing DM cash amounts in circulation did not only accompany transactions in the national economy, they also disseminated in hoards and in international uses. A series of adjusted cash figures is derived which shows the maximum dimension of national cash uses either for official or black activities. The adjusted cash figures in general grew less fast than overall cash, private consumption, GDP or M1 respectively. They even diminished relative to sales figures which often are accused of being a basis for black activities. This enhances the presumption that, contrary to some contentions in the literature, black activities during the times of the DM-regime played a minor or even decreasing role in Germany.