Archive for November 21st, 2007

Shortage of small denomination currency

November 21, 2007

Despite assurances from RBI that there is no shortage of coins (small denominated currency) (See google search results for more news on the same), the problem continues.

One often ends up with shampoo sachets, toffees, some shops even give credit notes, and so on. I keep wondering what happens to the coins? Where do they go? There is a storyon B’desh using coins for some other purposes, is it creating shortage?

Another problem is most shopkeepers do not accept 25 paise, 50 paise coins. Why should that be a case? I can understand if they are not legal tender, but they are. Then why the refusal? Something should be done to address these 2 problems.

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Assorted Links

November 21, 2007

1. Fed released its much-anticipated FOMC minutes that include Fed projections,outlook etc. WSJ Blog points to initial thoughts (more here), economists’ reactions.

 

Econbrowser as usual has interesting thoughts on the same.

 

2. MR points that according to latest data analysis, number of AIDS patients in the world has been revised much lower.

 

3. Mankiw points to Milton Friedman Choir.

 

4. Fin Prof providessome relief to all those people employed at securities firms who would be worried about year-end bonuses 🙂

 

5. Ajay Shah on 13th finance commission. He also saystime to move on MIFC project before Qatar and Dubai catch-up. I still maintain my reservations on MIFC.

 

6. TTR feels banking sector would continue to be healthy despite sub-prime mess.


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