Paper is too Good...

Article;

Why has Canada killed off the penny?


Comment;

We can always use paper. Paper's value does not change(little). And, we can perodically infuse more and more purchasing power without engaging metal, if we are in deflation part of the cycle or an induced fall in price-level. Prices will go down, but we can infuse purchasing power and demand within the whole economy at one strike. We can easily achieve fall in nominal wages but rise in real wages. Moreover we can easily, again, create wealth even under falling prices.But people need to have cash ( a little saving in form of cash) and less inequaltiy will be more helpful for equality concerns. For example we can, in INDIA, increase value of a rupee equal to four rupee if prices comes down. All we have to do is to bring out our 25 paise, the lowest denomination if we are comfortable with it, and the RBI agrees everybody that they will reduce prices by 25%. Like a bargain.( The RBI's job is also to boost employment by reducing interest rates and boost per capita ). Its just an example. I have also seen 5 paise in indian economy in my life too ..