Elimination of lower denomination coins and changing metal composition of coins are clear sign of hyperinflation across the globe. Yet, there is no shortage of experts warning the masses about the threat of deflation.
The threat of deflation is an illusion as the signs of hyperinflation are growing in size and frequency. The pain of monetary reality, however, prevents many from straying too from the comfort of the illusion.
Headline: Soaring metal prices ring death knell for 25p coins
The ubiquitous 25 paise coin will be history in six months’ time. Worried by the soaring metal prices, the government has decided to scrap all coins up to the denomination of 25 paise from June 30, 2011, making 50 paise the minimum denomination accepted in markets.
“From this date, these coins shall cease to be a legal tender for payment as well as on account. The minimum denomination coin acceptable for transaction will be 50 paise from that date,” said a finance ministry release on Thursday adding that the Reserve Bank of India will separately notify the procedure for calling in the coins.
Source: indianexpress.com
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