Franses, Philip Hans - In: Applied Economics Letters 13 (2006) 12, pp. 751-752
Monetary theory predicts that high inflation rates may imply the need for bigger banknotes. At the same time, monetary … authorities may fear that introducing higher-valued banknotes leads to inflation. This paper concerns an analysis of 40 years of … data on inflation and denominations for 59 countries, and it reports that causality runs from inflation to banknotes and …