Why hasn’t the government released bills bigger than $100, considering the various products nowadays that go above $1000? What kind of changes will we see and what kind of impact would it have?
Edit: By government, I mean US Government. thanks for pointing the ambiguity out!
In: Economics
Nothing.
The reason why there is no 500$ bill is because theres no additional benefit for anyone.
Imagine you going to the bank and getting 500$ for your vaccation. Do you take out 5 x 100$ bills, or do you take a singular 500$ bill?
with a single 500$ bill, upon the first purchase, the cashier now has to give you 4X 100$ bill and + change, if they don’t carry 100$ bill, thats a whole lotta bills you now have to carry.
But if you had take 5x 100$ bill, the cashier only has to find change for a single 100$ bill.
What benefit does providing people with 500$ or even 1000$ do? make drug deals for cartels better? or allow purchasing of cars with cash to avoid taxes?
For average people, there is no reason to actually use a 500$ bill, because commodities don’t cost that much.
If basic things like food and milk start costing in the hundreds, yeah, we’ll start seeing 500$ and 1000$ like the Japanese Yen.
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