Aint It Funny (Dollar Coins)

Mexico revalued, so why can't we?

Revaluing the US dollar would make coins a more viable token of commerce, harkening back to the days of actual usability instead of a means to make change.

This is however not a realistic or necessary possibility. The chaos it would cause worldwide would be monumental and not worth the hassle. Remember that the US Dollar is the top currency worldwide and almost every other currency depends on it. Changing the math would create an uproar worldwide, the likes of which have never been seen before, even with the creation of the Euro.

What will work would be the elimination of smaller denominations and eventual creation of larger denominations to replace bills in smaller amounts. We have experienced the former already with the elimination of the half-cent.

@n9jig
I can see what you are saying, but am not sure about whether it would cause all the confusion.
The reason being b/c the world had to adjust (and easily did) when we went from out old looking bills with small portraits to the new "Monopoly Money" (as I heard people calling it when it debuted.
If new issues with different appearance were made (finally get some color on the bills), I am not sure it would cause chaos.
A new 1.00 would be worth an old 5.00, etc.

I think, from traveling, that US currency is mainly what circulates in other countries. So the new coins would not be as big an issue either.

But again, I am no business major either. I might be missing something.

@jbuck
and so the price of Pepsi goes up to 5.00 a glass

Just think, if we devalued, it could be a nickel again

Mine too actually I think I remember a dime. I definitely remember .15 when I used to restock the machine at my grandfather's laundromats and get the change out (ah... the old sound of Mercs and silver Roosies in the change holder!).

As a kid I remember buying bottles of pop for a nickle. On special occasions Mom would give us a dollar and we would go to McD's and get a burger fries and a shake for two of us... Those days are done.

Sure, we could bring those back for nostalgia and revalue the dollar, thus making coins viable for purchases again. It would be a silly gesture and probably cause real purchasing power to decline dramatically. By just shifting the coins upward to follow the natural procession of value things remain more stable. Eliminate lower value coins and add higher value coins, replacing lower value bills.

Eventually we are going to be a cashless society anyway so it is easier to get there gradually by value shifting.

Seeking to be more educated, ... why are things more stable if this is followed? I would like to see the data on this as the only thing I have to go on at present is what happened in Canada. Prices overall went up on everything b/c the forcing of the Loonie on the public also had the effect that their dollar became "just pocket change." Prices were raised accordingly. Consumers started having to pay more for everything. And now, as I was told last June when visiting and bringing this up with my many friends, their dollar is seen as pretty much valueless.

I have nothing to back it up with, but my opinion (note that word) is that the opposite psychological effect of having a dollar be "worth something" again would not induce an immediate price raise in things.
Speculation only from studying the human creature

Are there studies available on devaluation bringin more stability? Or is all of this we are talking about speculation (well the Canada and Loonie part is not)? It is interesting to me.

the funny thing about a payphone ya never had a dropped call because of signal