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2 votes

A world where some currency loses value when handled would have a deflationary economy. What would the consequences to society be?

People will use the other coins If you want people to use devaluing currency, then ALL of your coins need to devalue, and the amount they devalue has to be proportionally equal, measurable, ...
Nosajimiki's user avatar
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3 votes

A world where some currency loses value when handled would have a deflationary economy. What would the consequences to society be?

Very easily explained. "this thruppence coin devalues after too much skin contact" It is entirely and totally about how long that takes to happen. This is the absolutely normal nature of ...
Fattie's user avatar
  • 1,136
3 votes

A world where some currency loses value when handled would have a deflationary economy. What would the consequences to society be?

I feel like a system of credit will be developed to avoid using your currency. If I setup a bank account, and have all my money in there except for a small amount of pocket change. I could then setup ...
cybernard's user avatar
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1 vote

A world where some currency loses value when handled would have a deflationary economy. What would the consequences to society be?

Money like this already exists in real life. Though it applies to all forms of money, and not a single coin. It is called Inflation.
Questor's user avatar
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5 votes

A world where some currency loses value when handled would have a deflationary economy. What would the consequences to society be?

In Germany there are private "regional currencies" issued as a substitute for the euro. Most of these are depreciative in nature and known as schwundgeld (I think this can be literally ...
Michael Richardson's user avatar
3 votes

A world where some currency loses value when handled would have a deflationary economy. What would the consequences to society be?

This is kind of like imagining using Trading cards such as MTG or Pokemon as a currency. Already there are people who collect rare coins (Numismatics ) and if you have coins that devalue themselves ...
aslum's user avatar
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3 votes

A world where some currency loses value when handled would have a deflationary economy. What would the consequences to society be?

Inflation originally meant increase in money supply. If nothing else happens, money valuation changing from 3p to 2p would be deflationary in this sense, since there is effectively less money to go ...
TrayMan's user avatar
  • 151
6 votes

A world where some currency loses value when handled would have a deflationary economy. What would the consequences to society be?

First and foremost: BAD COIN PUSHES GOOD COIN OUT. SO if your 3p coin is something that devalues fast, it would be uses extensively and dominate trade, while "good" coins that do not devalue ...
Going Durden's user avatar
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26 votes

A world where some currency loses value when handled would have a deflationary economy. What would the consequences to society be?

The Great Recoinage Since you're imagining a place like 17th century London, let's take a look at what actually happened in 17th century London for our answer! The year is 1696. Most of the coins in ...
elemtilas's user avatar
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9 votes

A world where some currency loses value when handled would have a deflationary economy. What would the consequences to society be?

This is not deflationary. What the setup in the question describes is just that there is a penny coin, a tuppence coin, and a notionally threepence coin. Since the threepence coin is of uncertain ...
AlexP's user avatar
  • 90.6k
45 votes

A world where some currency loses value when handled would have a deflationary economy. What would the consequences to society be?

It's not going to have any real effect really. It will just mean that the "thrupeny" coin will be treated as tuppence in all transactions regardless of its current colour. If you offer a ...
Pelinore's user avatar
  • 9,668
6 votes

A world where some currency loses value when handled would have a deflationary economy. What would the consequences to society be?

Barter If the value of your money is variable, then you will find that Black Market trading and Bartering will increase in usage, with people reserving money for the type of transactions where it has ...
TheDemonLord's user avatar
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