me, thinking out loud…

Change & Free flow

2010-07-30 Fri 06:33

No. Not the Obama change. I’m talking of change as in small denominations of cash. Everybody is reluctant to part with it. There’s always a problem with getting it. I’m often worried before getting into a bus or an auto, or going to a shop whether or not the guy would give me change for a 50, 100 or a 500. People so reluctant to “part” with it. What are they saving it for?

I think the situation would be much better if people readily gave it, when required. There would be a free flow and if not anything more, I wouldn’t have to worry about it when going somewhere. But, I “feel” this would actually reduce the instances when both the parties don’t have enough change with them. What do you think?

Comments on: "Change & Free flow" (3)

  1. :) why do i see the general applicability of every simple lesson/principle i come across?! ;) “we big picture guys”! ;)

  2. punchagan said:

    Yeah, big picture = IMAX. ;-)

  3. Inside the World’s most annoying economic crisis: http://www.slate.com/id/2205635/pagenum/2

    There is a trivial solution to this though: make getting changes easy (from banks, e.g.) People hoard because they are afraid. If getting your note “changed” is easy, then there would be no need to get a “change” too. This is similar to how Fractional Reserve Banking works– people trust that when they want to withdraw their money from the banks, banks will not default. Thus, nobody withdraws money, and thus banks make-do with (almost) nothing.

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