Currency and Money Value

We use the number of units of each currency that are created as a measure of currency confidence or risk. When additional units of a currency are created there is a greater risk of a loss of purchasing power due to inflation or hyperinflation of the currency price of goods and services. People usually refer to currency as money unless it is debased severely by new currency creation. True money like gold and silver cannot be created by private and central banks.

Friday, August 4, 2017

IMF Policy Discussion: Suspending Large Denomination Notes Makes Cash More Expensive to Use

The IMF stated in its August 2017 Negative Interest rates policy paper (page 42) that:

"Suspending issuance of large denomination notes would increase the cost of using cash as
a store of value and presumably allow for a more negative rate."

http://www.imf.org/en/Publications/Policy-Papers/Issues/2017/08/03/pp080317-negative-interest-rate-policies-initial-experiences-and-assessments?cid=em-COM-123-35723

Currency and Money Value

Friday, August 4, 2017

IMF Policy Discussion: Suspending Large Denomination Notes Makes Cash More Expensive to Use

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