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U.S. Coins: Alternative Scenarios Suggest Different Benefits and Losses from Replacing the $1 Note with a $1 Coin
Lorelei St. James (au)
Replacing the $1 note with a $1 coin would provide a net benefit to the goväó»t. of about $5.5 billion over 30 years, or an average of about $1 million per year. This benefit was entirely attributed to äóìseigniorageäó -- the difference between the cost of producing coins or notes and their face value. This report: (1) updates the analysis to account for recent changes in note processing: (2) the specific benefit or loss to the goväó»t. for each of the first 10 years of its 30-year analysis; (3) the net benefit or loss to the goväó»t. over 10 years if the interest savings due to seigniorage are excluded from the analysis; and (4) the net benefit or loss to the goväó»t. over 10 years if it is assumed that each note will be replaced by 1 coin, rather than 1.5 coins. Illus. This is a print on demand report.
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