We show that there are theoretical arguments, which indicate that leaving out the 1-euro cent and 2-euro cent leads to more efficient cash payment behavior. Next, we show that having no access to 100-euro notes and 10-euro notes is less harmful than having no 50-euro notes. Finally, we argue that the transition from the Dutch guilder to the euro should not have led to different payment behavior, at least in theory.

Econometric Institute Research Papers
Erasmus School of Economics

Kippers, J., & Franses, P. H. (2003). Do we need all Euro denominations? (No. EI 2003-39). Econometric Institute Research Papers. Retrieved from http://hdl.handle.net/1765/1048