Appeal for 500 yuan bank note

Source: Mao Yushi’s blog

The following is taken from Mao Yushi proposed offer 500 yuan bills to save issuance costs 2 billion per year:

(In recent years, rumors of a network of 500 dollar bills, the figure allotted by the blog editor.) 5 CPI rose 5.5%, marking 34 months since a new high. For a time, should be made about whether a larger denomination notes the controversy has been raised. Economist Mao Yushi said recently in micro-Bo, to issue RMB 500 yuan face value. In short, the denomination is too small, increase transaction costs. Compared with 500 dollar bills and the loss each year can be estimated using the following method. First, according to the present total cash in circulation reached 100 yuan notes the number of sheets, and cash flow per year to estimate the number of counting money and money consuming human life. Crude doing direct and indirect losses every year and about $ 1 billion to 2 billion yuan between, not a small amount.

Economist Mao Yushi, since 1997, issued on repeated promote RMB 500 yuan face value. In his view, the lack of large denomination banknotes, will not only cause inconvenience of economic activity, such as carrying and storage space occupied by money, to travel and for business to increase the inconvenience and dangers of stolen Stolen, but also because issuance cost is too large, causing unnecessary economic losses, this loss will ultimately indirectly by the taxpayers foot the bill. But his were not so far adopted this view, especially in the CPI in recent years, continuing to rise, inflationary pressures unprecedentedly severe cases, a view that is considered to increase the public’s inflation fears. However, in theory, the size of denomination banknotes and inflation are not necessarily linked.

Tags: , , ,

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: