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Printing money has in itself a cost in shifting resources from the market to the government or the central banks (or the financial sector in general).
by iwwr 15y ago
Printing money has in itself a cost in shifting resources from the market to the government or the central banks (or the financial sector in general).
- joezydeco 15y agoUnless you live in Ted Kennedy's or Trent Lott's district, where the cotton farms and paper mills are. For decades these senators continuously sabotaged measures to eliminate the paper Dollar and get the US entirely on dollar coins. The US is probably the last major economy to still be using paper for such small denominations.
- caf 15y ago...and in most other places, even the notes aren't paper/cotton anymore.
- joezydeco 15y agoGood point. I have an Aussie bill somewhere in my drawer at home. That's a cool banknote.
- kragen 15y agoDepending on where you draw the line between "major" and "minor" economies, the US can be the only major economy to do anything at all, since its economy is bigger than that of any other country. However, in my recent and local experience, small-denomination paper is not so unheard of: Country Smallest paper bill in USD PPP GDP/year Argentina $2 0.50 $640B Brazil 2 reais 1.26 $2200B Uruguay $5 (now rare; usu.$10) 0.27 $41B
- IsaacL 15y agoChina uses a lot of paper notes - paper 1 jiao (about 0.02 USD) are fairly common. They're also really annoying.