tag:blogger.com,1999:blog-6704573462403312459.post8097629206741311944..comments2024-03-29T02:53:03.321-04:00Comments on Moneyness: Indians' "ill-informed notions" concerning the legitimacy of ₹10 coins JP Koninghttp://www.blogger.com/profile/02559687323828006535noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6704573462403312459.post-72275374752772737282018-03-10T12:28:57.621-05:002018-03-10T12:28:57.621-05:00Hi Rahul. I don't mean that the 10 rupee note ...Hi Rahul. I don't mean that the 10 rupee note should be demonetized like the 500 and 1000 rupee note were in 2016. That was an extremely aggressive demonetization. Rather, the central bank would simply stop issuing new 10 rupee notes and destroy existing ones as they re-enter the banking system. Sort of like how the 2 and 5 rupee notes were removed to make way for the equivalent coins. Ten rupee notes would continue to be legal tender forever.JP Koninghttps://www.blogger.com/profile/02559687323828006535noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-5714286684685987552018-03-10T07:00:00.003-05:002018-03-10T07:00:00.003-05:00Interesting. I have never seen anyone refuse to ac...Interesting. I have never seen anyone refuse to accept a ₹10 coin (I live in Chennai, a large metropolis) and usually give out / receive several a week. As for removing the ₹10 note: if you mean declaring the existing ones not legal tender, well, the current government tried that with high-value notes a couple of years ago and is not keen to remind people of that experiment! Rahulhttps://www.blogger.com/profile/16574872567420054661noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-42639084385185059762018-03-08T11:03:39.086-05:002018-03-08T11:03:39.086-05:00Thanks Nick. And yes, I agree with you on the netw...Thanks Nick. And yes, I agree with you on the network effects.JP Koninghttps://www.blogger.com/profile/02559687323828006535noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-72288315765976651982018-03-07T21:40:39.007-05:002018-03-07T21:40:39.007-05:00Good post. Your explanation makes sense. But I thi...Good post. Your explanation makes sense. But I think it gets reinforced by a network effect. If only 1% refuse to accept the coin, others who wouldn't otherwise care will also prefer not to accept it. Usual Menger story.Nick Rowehttps://www.blogger.com/profile/04982579343160429422noreply@blogger.com