(fwd) FC: Fed official wants expiration dates [...] for bills

DANIEL.DAVIES at flemings.com DANIEL.DAVIES at flemings.com
Wed Oct 27 10:19:36 PDT 1999


cheers, t

Now this is a fantastically wacky idea. All it would do would be to increase the secondary market value of the currently existing stock of greenbacks, as they would have a separate role as a store of value for criminals. Since the money supply of old money would be fixed, they'd even be a harder currency than the new dollar. Unless Goodfriend also intends to demonetise the current paper currency, which is an incredibly extreme step -- carried out once, in Russia, unless someone else knows different.

The Fed really is going downhill these days.

dd

The 34-page paper argues a carry tax will

discourage "hoarding" currency, deter

black market and criminal activities, and

boost economic stability during

deflationary periods when interest rates

hover near zero.

[...]

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