Considering the rise of the AU$ against the US$, would it make sense for Australia to follow the lead of New Zealand in eliminating their 5c coin? I haven't heard this suggested by any politician or economist, but I am curious to see if and how soon Australia might follow it's southerly neighbour's numismatic pruning. Consider that in 1857 a US ½ cent had a buying power equivalent to US $0.08 in todays money. (1857 was the last year ½ cents were produced in the US.)
It's the other way around - should US eliminate the 5 cent piece as well as the dollar bill? I'm happy with the 5 cents piece as well as the 2 dollar coin although the 50 cents piece should be a lot smaller as well as the 2 dollar coin a bit bigger. If something happens, it's the 50 cents piece that's going to be a big hit - it's too big for it's size. The only reason why New Zealand decided to do it is because it's sick and tired of all those foreign coins that circulate - Fujian, Australian, Samoa, etc were all struck on the same planchet. Removing the 5 cents and reducing the size of the coins is just a cheap excuse to make a huge profit due to the mad metal prices.
other way 'round We would probably eliminate the 1 cent piece before the 5 cent piece. I am so tired of waiting for the US to switch from a $1 bill to a $1 coin and impose a $2 unit. I am worried that removing small coins causes inflation. This is just an idea I came up with in my head; it isn't based on anything I've seen published. Did this not happen in Oz, NZ, Sweden, and other places where low denomination coins have been eliminated? If not, sign me up for discontinuation.
From what I know (e.g. Denmark, Netherlands) rounding does not have an inflationary effect. All you do is round the total amount, not the price of any single item. Totals are rounded up or down, whatever is closer, e.g. if your smallest unit is a 5 cent piece, it would be 8/9/0/1/2 -> 0 and 3/4/5/6/7 -> 5. And usually it affects cash payments only anyway. Sure, some merchants might try and use the introduction of such rounding rules to increase prices - except that in competitive markets that would be somewhat difficult. Increasing wages, taxes, prices of raw products, energy cost etc. etc. influence prices, not the question whether cash totals are rounded up/down or not. Just my two, errm, zero cents. Christian
What I want to know is what has the poor little inoffensive 5c done to you to make you want to talk publicly about ELIMINATING IT It has feelings as well you know! You heartless person I vote NO
A matter of science my dear fellow, a matter of science The 5c Australian coin has done nothing to me. I bring it up as a matter of scientific inquiry, not vendetta. My thinking was that if, in the future, AU$0.05>US$0.05, it would seem odd to me for Australia to eliminate their 5c coin. But let's think about this: you still need 8 Lincoln in 2007 to equal the buying power of a ½¢ in 1857 America. In the UK, 1p today is worth less than a ha'peny in 1972, so maybe we're the crazy ones, not New Zealand.
