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I don't understand why the government can't mint more coins and exchange them with the banks for notes.
by sdurkin 18y ago
I don't understand why the government can't mint more coins and exchange them with the banks for notes.
- emmett 18y agoThey did, in record numbers. It didn't help; the coins were simply hoarded.
- compay 18y agoIt costs a lot of money to make coins. With inflation appearing to always be just around the corner, the government if afraid of investing tons of money to mint coins that could some become worth significantly less than the metal they're made of.
- jyothi 18y agoThat is true. May be the govt should print notes for minor denominations too. They are the government they can legally launch a new currency note, can't they ? The govt seems to be losing a lot more money with the shortage, like people forced to give free rides on subway.
- malekov 18y agomaking coins cost a lots of money (ironically), more than making notes... so, that is the problem