In any given currency one question always arises: What is the optimal set of coins and notes? The denominations should allow for paying all varieties of amounts in a convenient way. As we saw in chapter 1 of my blog, cash payments span multiple orders of magnitude: from 0.01 cent to hundreds of dollars. So as a central banker, what denominations should you select? In chapter 2 we look at how this problem has been solved…over and over again going back to the Romans.
Download chapter 2, As Phony as a $3 Bill, here.