Naren Mohan Ramesh

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Although coins are physically durable, they fail to withstand inflation. They tend to disappear rapidly with higher inflation due to one of two reasons. First, it becomes profitable to melt down the coins, because the metallic value has risen above its face value. The higher the price level, the more the meltdown. Even with stable inflation, a rise in the price level induces meltdown.
Applied Macroeconomics: Employment, Growth and Inflation
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