Optimal Denominations for Coins and Bank Notes: In Defense of the Principle of Least Effort

Posted: 16 May 2002

See all articles by Leo Van Hove

Leo Van Hove

Vrije Universiteit Brussel (VUB)

Abstract

A number of recent articles argue that the 'problem of Bachet' - the problem of finding the most efficient set of weights - can shed light on the problem of finding the optimal denominational structure of a series of coins and bank notes. This note argues that the two problems differ in nature, and that the principle of least effort is the more relevant criterion.

Keywords: banknotes, denominations, central banks

JEL Classification: E42

Suggested Citation

Van Hove, Leo, Optimal Denominations for Coins and Bank Notes: In Defense of the Principle of Least Effort. Available at SSRN: https://ssrn.com/abstract=291012

Leo Van Hove (Contact Author)

Vrije Universiteit Brussel (VUB) ( email )

Department of Applied Economics (APEC)
Pleinlaan 5
Brussels, B-1050
Belgium
+32 2 614 84 49 (Phone)

HOME PAGE: http://research.vub.ac.be/applied-economics/members

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
748
PlumX Metrics