Of course, such policy measures are not without their costs or risks. And taking prudent steps to normalize government and central bank balance sheets is important to help bring down inflation today and ensure room to respond to future downturns. At the Bank of Canada, this normalization is underway with our quantitative tightening program.
If banknotes are staying longer in the hands of the public, it seems likely, too, that central banks will require the notes to have security features that are more overt. That is, security that can be easily seen by looking at the note or by easily scanning a banknote with a smart phone.