HOUSE BILL: The Currency of Atlasia Act (Passed - Sent to VP/PPT)

[Dereich]

My main objection is that this limits the ability of the federal reserve to print higher notes should future inflation require higher notes. I guess they could appeal to the legislature, but we'd almost certainly move slower than financially optimal.

The only other quibbles I can think of are that this kills the $2 bill (which is a thing), and that this takes away the power to make $1 coins.

[Dereich]

The Bureau of Engraving and Printing is responsible for paper currency and the United States Mint for all coinage. Incidentally, the Federal Reserve has nothing to do with the process.

Anyway, could I just add as an observer that legislation which is so specific in this vein is rather unworkable. Much better, in my opinion, to leave the decisions on denominations to the respective agencies, and if the Congress wishes to institute a commemorative coinage series for example, that could easily be done through legislation.

Whoops, my mistake. Still doesn't change the inflation concerns though; we wouldn't want something like this to happen.

[Dereich]

Love the idea of polymer banknotes - aside from the longer shelf life it would definitely make counterfeiting much more difficult.

That aside, this bill needs to allow for more flexibility as Dereich mentioned. I think there should be a provision that allows the BEP to print and coin other denominations than those listed here at their own discretion. Having the legislature amend the bill every time we want to add a 50¢ coin or $2 bill would just make it cumbersome.

Perhaps we could have the best of both worlds; the BEP is allowed to do runs of other denominations, but these must be limited in duration without legislative approval. I suppose it'd be like the effect of the War Powers Act on presidential ability to wage war. In general, they'd be limited to the denominations in the statute  but would have some flexibility for unexpected problems or some anniversary that called for another denomination.