Amateur Quantitative Easing

When the Bank of England decides to expand the money supply this upsets some economists but at least everybody accepts that it is legal for them to do so, with the government’s permission.

Further down the food chain, there seems to be rather a lot of amateur quantitative easing going on in Guildford at the moment. These would be pirate Mervyn Kings’ method is simple. They augment the money supply with pound coins of their own devising. This would be all well and good except for two minor problems:

  1. The coins are not legal tender. They are worthless. It is illegal to spend them.
  2. The sector of the economy that benefits from the easing of the money supply is the criminal part. Quite apart from everything else they get up to, they pay no taxes, and if they did they would probably try to pay them in forged coins.

Charming.

The long term solution is to call in all pound coins and replace them with bimetallic coins like the two pound coin. These are far harder to forge. Write to your MP, if you can be bothered.

In the meantime, keep a look out for fake pound coins. I got a dodgy one in Co-op today. The staff were completely unaware that forged coins existed.

Details, and lots of pictures, here:

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July 9, 2010. Links, Money.

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