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Assuming this article is serious, exactly how do they plan to phase out the higher denomination bills? Is it actually feasible? "Rogoff says he doesn't want to
by thr0waway1239 10y ago
Assuming this article is serious, exactly how do they plan to phase out the higher denomination bills? Is it actually feasible?
"Rogoff says he doesn't want to get rid of cash all at once. First, he would phase out 100s, then 50s, then 20s, leaving smaller bills in circulation for the foreseeable future. "I want to have a less-cash society, not a cashless society," he said."
- venomsnake 10y agoStop printing them. And remove them from circulation when they enter the financial system. It is easy.
- zalepa 10y agoPhasing out bills is definitely feasible. Bills usually pass through a bank fairly often, at which point they can be removed from circulation. In general banknotes have their design changed every 10-20 years, and very old banknotes are no longer legal tender (though they can sometimes be exchanged at the central bank). A regular bank won't accept a deprecated banknote. The ECB is currently phasing out 500s, first by removing those it can get its hands on from circulation, and after a few years by declaring the rest no longer legal tender.
- DashRattlesnake 10y ago> In general banknotes have their design changed every 10-20 years, and very old banknotes are no longer legal tender IIRC, the US has never declared any version of its old currency not-legal-tender, and no-one would have any problem spending any US banknote that in any way resembles the current ones in size or shape.
- nommm-nommm 10y agoI've never had problems spending very old banknotes in the US.
- monkeyprojects 10y agoI don't believe US banknotes change design that frequently. In europe bank notes change design every 5-10 years and quickly stop being legal tender a 3-5 years afterwards...
- nommm-nommm 10y agoWe had a major redesign in about... 2001ish. You still see the old notes circling around sometimes and they are still legal tender. The $100 bill was redesigned about two years ago. We have new paper notes coming out soon... https://modernmoney.treasury.gov https://modernmoney.treasury.gov.
- umanwizard 10y agoBills have a pretty short lifetime. Banks can readily exchange them with the government (presumably, for credit in their account with the Fed) and vice versa. The government then destroys then old or mutilated ones. I imagine if the government simply stopped printing physical 100s, the number in circulation would dwindle pretty fast.
- Turing_Machine 10y agoHundreds last a lot longer than ones, though. https://www.federalreserve.gov/faqs/how-long-is-the-life-span-of-us-paper-money.htm https://www.federalreserve.gov/faqs/how-long-is-the-life-spa...
- DashRattlesnake 10y ago> Bills have a pretty short lifetime. It depends on the denomination. I think $1s have a lifetimes of ~18 months, but it goes up from there. I would imagine $100s have useful lifetimes of at least a decade if not more.