Tuesday, January 23, 2007

the Penny may become the Nickel

An economist for the Federal Reserve Bank of Chicago has suggested that the penny be revalued to 5 cents. The main reason is because the price of copper has gone up dramatically causing the intrinsic value of a penny to be more than 1 cent. The concern is that groups will illegally ship coins overseas where they can be melted down and be sold. This is a problem in countries like the Philippines. What i want to know is, why skip 2 cents and go straight to 5?

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