Introduction

Abstract

We seem to be well on the way to a cashless society. Paradoxically, however, the majority of the transactions are still paid in cash even in the most advanced economies. A second paradoxical observation is that, despite the primary and common character of currency, the economic theory on the use of and demand for cash is only rarely supported by empirical evidence. In addition, some aspects of the theory have not been tested at all because of a lack of relevant data. Nevertheless, the interest in currency has flagged.