do coins determine a nation's economic status?

[nuss]

Don't know where to post this...

It's like this... recently, we would have the new ten peso coin circulating. ano ibig sabihin non? Ganon na ba ka-devaluated ang pera natin?

Other than that, our coins are thinner compared to richer countries... Likewise, countries whose money have lower value have coins thinner than ours.

Example, a Chinese Yuan coin was given to me by mistake as jeep change since its diameter is the same as our 25 cents'. Although, the Chinese counterpart was lighter.

Atsaka, for the past 50 years, we have been changing our coins alot. From flora/fauna to our present BSP seal at the back.

According to feng shui, all of these changes and the size of thickness of the coins themselves determine the economic status of a country...

So... does that mean we are in economic turmoil?

[ilpadrino]

Nah... it could mean we have a thriving coin-op machines industry. :)

A long time ago, I remember coin-ops operator associations in the U.S. pushing for the government to release a dollar coin. It seems the machines have a voracious appetite for coins than bills, bill validators are a lot expensive too.

[pinkmoon]

Also, coins are more economical in the long run, as they last much longer than paper. But yes, it tends to hint at a currency's value, doesn't it? Well who knows, maybe one day soon the "billfold" will be phased out.

[ilpadrino]

Ok, at least I saved a thread from sinking into oblivion. :D

[ilpadrino]

Yeah, nowadays a nut washer is more expensive than a coin I just drill a hole in it when I need one... :D

[Leigh]

Last Saturday, i was able to watch Magandang Gabi Bayan when they featured the new 10 peso coin, when i got my own coin, it was really evident that it was lighter than usual, and that when you drop it, it has a different sound.

Anyway, the Central bank mentioned that they came out with the 10 peso coin last year, it was actually the millennium coin but they weren't able to make a lot that's why they just relaunched it again to push Banko Sentral ng Pilipinas.

I agree with what pinkmoon mentioned, coins tend to last longer than bills. Regarding the devaluation of our money...i personally don't think so, and when they change the bills to coins, they just have the lowest amount.

It's a scary thought when they have our 500 pesos turned to a coin.

[YaYiN]

Originally posted by Leigh
It's a scary thought when they have our 500 pesos turned to a coin.
yeah, that is scary. hopefully, that won't happen too soon.:(

[Lolita]

Ang pera kasi may value talaga yan. Dahil sa mababa na ang value ng peso, pinapalitan na rin nila ang materials ng pera natin.

Kung matatandaan nyo, nuong unang panahon, ang piso ay kasing laki yata ng Marie Biscuit.

Ngayon, ang piso natin ay kasing laki nalang yata ng P0.25 nuong unang panahon.

Pati ang P10 eh may butas na sa gitna. Para mas tipid sa materials.

[Q]

"Do coins determine a nation's economic status?"

I think a more accurate statement would be:

"Coins *reflect* a nation's economic status."

Without getting into a prolonged explanation, over time prices of goods generally rise. It takes more pesos to buy the same amount of goods. As a result, more tangible currency (aka fiat money) such as coins and bills must be minted to account for the increased money flows.

As prices increase, the lower-denominated coins and bills are used less frequently. Because these units of currency are used less often, government will reduce the expense of minting coins and bills by either eliminating some denominations, reducing the quality of these units, issuing newer forms of tangible currency, or issuing new units of higher denominations. That's why over the past couple of years there has not been a one-centavo coin, the one-peso coin has gotten lighter and smaller, five pesos went from a bill to coin, and new bills such as the P500 and P1000 have been introduced.

The addition of a P10 coin, which I've just learned about from this thread, is a continuation of the process. The weaker the currency, the faster these changes occur. Let's hope the Philippine government finds more fundamental economic solutions to address problems rather than by printing new money.

[n0b0dy]

hmmmmmmm

I think the absence of paper and coin money in the economy is a better reflection of a nation's economy.

Why is that? The advent of debit cards and other such intruments have hastened the transfer of money, typically the healthier the economy the faster the transfer of money between people. Paper and coin money is an inefficient way of circulating capital. For one thing you have to go to a third party to obtain and hide it, the bank. But, with debit cards and other instruments, the debit card can be replenished with direct deposits, and money can be spent directly w/o going to a bank.

Sounds trivial don't it? But, micro-economists do look at these things...

Back to the subject, when I am in third world countries, I often use more paper money and coins, but not as much when I am in the the US.

[Q]

Originally posted by n0b0dy
I think the absence of paper and coin money in the economy is a better reflection of a nation's economy.

I definitely agree, n0b0dy.

Your statement is just as accurate. Electronic money is perhaps the most cost-effective form of money as there's not as much "product management" as with fiat money. With electronic money, denominations are eliminated and costs now center on technology.

All right, so I'll restate and say "the production of fiat money reflects a nation's state of economic development."

:)