Can Govenments resort to producing coins to replace bank notes as a means to stimulate consumer spending?
Yes. Governments can pretty much do what they want.
Have you seen the 50 state coins? They made a ton of money for the government because of people collecting them.
They could...- But I can think of easier ways to start another Revolution... It's an idea that will NEVER fly with the public... We LOVE our paper money too much... I mean, -Look; the Government has been trying to get us to use $1 COINS for YEARS- & the ONLY people who WANT the darn things- are Collectors! Can you "Imagine" people carrying around $1., $5., $10., $20., & $50.- coins??! -"Homies Don't Play That!- I Don't Think So..." :)
I don't quite see how producing coins over producing bills will make people spend more... Are you saying that people will buy things easier because they won't realize they are spending as much? $20 is still $20, it doesn't matter if it is printed on a coin or on a bill. The government could do whatever they want with the currency, but I don't think changing to a fully coin-based system would boost spending at all.
Also, many people just use a credit/debit card these days so currency is taken completely out of the picture.
Historically bank notes stimulate spending more than coins.
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