Euro banknotes and coins are legal tender in the euro area. Cash is also an important payment instrument for ensuring that consumers have the freedom to choose how they pay, and it is essential for the financial inclusion of all groups in society. The Eurosystem cash strategy aims to ensure that...

We study how financing constraints affect the cash holdings of small and mediumsized enterprises. There has been little empirical work on this topic, even though these firms often face financial constraints. We contribute by using detailed data on credit ratings in Sweden as a measure of...