Impractical, as it would be impossible to use as a medium of exchange in a single transaction.
Multiple coins in lower denominations might work as alternatives to increasing the national debt. But by placing such coins in circulation, the government would still be adding to the money supply with all its inflationary implications.
The M2 money supply is currently a shade over $10 trillion. Adding an additional $1 trillion in coins over the course of a year would increase this amount by about 10 percent. The price inflation it would create might be more or less than 10%, depending on population growth, multiplier effects, technology advances driving lower costs, increased or decreased economic activity, etc.
An economy based on ever-increasing debt is unsustainable in the long run. So is an economy based on ever-increasing money printing (or coin striking, if the face value of the coins greatly exceeds their metal value).
High-denomination coinage could buy us some time by putting the brakes on increases in the national debt. But unless fundamental changes are made in our monetary and fiscal policy, the end result will be the same.
GBurger717
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Multiple coins in lower denominations might work as alternatives to increasing the national debt. But by placing such coins in circulation, the government would still be adding to the money supply with all its inflationary implications.
The M2 money supply is currently a shade over $10 trillion. Adding an additional $1 trillion in coins over the course of a year would increase this amount by about 10 percent. The price inflation it would create might be more or less than 10%, depending on population growth, multiplier effects, technology advances driving lower costs, increased or decreased economic activity, etc.
An economy based on ever-increasing debt is unsustainable in the long run. So is an economy based on ever-increasing money printing (or coin striking, if the face value of the coins greatly exceeds their metal value).
High-denomination coinage could buy us some time by putting the brakes on increases in the national debt. But unless fundamental changes are made in our monetary and fiscal policy, the end result will be the same.
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