Assorted links

by on May 12, 2009 at 12:54 pm in Web/Tech | Permalink

1. Where did Argentina's coins go?  Some premia are as high as seven percent.

2. The risk of debt.

3. Interview with John Crowley.

4. Will there be a market for Klingon opera?

5. Untitled.

liberalarts May 12, 2009 at 1:23 pm

I rarely travel to a developing country where stores have a comfortable amount of change available. I usually attribute that to recent inflation or stores that have much weaker capital, and thus keeping comfortable amounts of change in inventory is too much to tie up for them. But Argentina is a surprise. I was there in 2006 with no change problems, and they haven’t had massive inflation since then. Odd.

Donald A. Coffin May 12, 2009 at 2:08 pm

The “small change” problem isn’t really new. See Thomas Sargent’s book The Big Problem of Small Change (reviewed here:
http://www.powells.com/biblio?isbn=9780691029320

bartman May 12, 2009 at 3:15 pm

Babar, I had the same experience at the Matahari department store in Kuta Square – getting candy for change. When I was in Bali in 1999, the exchange rate went from 8,000 Rupiah/$ to 15,000 in a few months.

I lived in the UAE in 2004 when a similar problem cropped up – all of a sudden 1 Dirham coins became very scarce, but we were told the problem would be solved when a new shipment of coins from the Winnipeg Mint arrived, and it did seem to go away when the new lot came.

Is there any chance that the Argy coins are worth more as metal than they are as coinage?

Ed May 12, 2009 at 5:02 pm

I ran into the exact same problem as Lewis when I visited Buenos Aires in 2007. The busses only take coins, store owners are very reluctant to give out coins. I’m surprised no one sells coins for an amount greater than the face value in paper currency (maybe its illegal?). I’m also curious how this situation arose.

michmill May 12, 2009 at 7:16 pm

Does anyone else think that 125 coins per person is a small number? I know I have now and have always had well over 125 US coins somewhere around my house, and I’ve never hoarded them. Perhaps the government does not profit much on them, so sees little point in minting enough for circulation. That, coupled with mild hoarding, would create quite a dilemma. It would seem to be a simple problem to solve: mint more coins and remove paper currency in similar fashion.

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