Eliminating high-denomination notes could reap monetary policy benefits, an economist from the Bank of England concludes in a blog post.

On the BoE’s ‘Bank Underground’ blog, Ronnie Driver notes the ability to switch bank deposits into banknotes limits central banks’ ability to set negative nominal interest rates.

“Eliminating high denomination notes would help alleviate this constraint by increasing the costs of such a switching strategy,” he says.

Driver believes such policies become