1 and 2 € paper notes.

[John S]

Our local newspaper ran an article today that Italy and Austria want the ECB to replace the 1 & 2 € coin with paper money.

Does anyone have any idea on what chances there are of this happening and to what purpose it would serve?

[nodisch18]

I have heard that italia and greece want to replace the € 1 and € 2 coin...

Italia want to replace them because the largest coin the had 2 years ago was only € 0,25... So all the elderly people are confused with the high value of the current coins.

[Annie_in_exile]

Italia want to replace them because the largest coin the had 2 years ago was only € 0,25... So all the elderly people are confused with the high value of the current coins.

Yeah, and one more reason behind this utterly bright idea was that it would cut down inflation. I'm no expert in world economics or financial stuff in general, but this logic really fails me.

[Elmo]

Yeah, and one more reason behind this utterly bright idea was that it would cut down inflation. I'm no expert in world economics or financial stuff in general, but this logic really fails me.

People tend to spend coins more easily than notes, because of money
illusion: people tend to think coins are nearly worthless, while people tend
to think notes are extremely valuable. So if the €1- and €2-coins are
replaced by notes, people will spend less, which forces the shop owners
to lower the prices, and eventually will cause the inflation to drop.

[Gauss]

On the other hand, some economical problems in the Eurozone are caused by low domestic consumption. Now we hear that people might tend to spend more money than they actually want because the think the coins they spend are close to worthless. Since spending money is normally done by consumption (rather than by dropping it on the street) it seems to me that it would be a great economic stupidity to replace coins by bills.
Another thing that bewilders me is this: The percentage of bills in miserable condition is significantly higher in southern european countries (Italy, Spain; not so sure about Greece), and right southern european countries request this bill/coin-change. Bills with low denomination tend to become even more worn than those with high denomination. Coins can be used for decades. So why would these countries wish to get more and more bills they need to replace every other year instead of coins?

[Schaza]

That's right. Also what i have heard about that coins and notes circulating side by side, is great insanity. That will at last confuse everybody. My opinion is that 5€ should be coin too, because i feel that 5€ is enough small money to put into coinbottle... now i put coins in to bottle, and 5€'s to box.

But... when we have more papermoney, then we have more notes, and then we have more numbers for EBT.

[Annie_in_exile]

People tend to spend coins more easily than notes, because of money illusion: people tend to think coins are nearly worthless, while people tend to think notes are extremely valuable. So if the €1- and €2-coins are replaced by notes, people will spend less, which forces the shop owners to lower the prices, and eventually will cause the inflation to drop.

Yes, but... money is money. If I want to buy something, it doesn't matter whether I use notes or copper coins or even gold coins to pay for it - it'll deminish the balance of my bank account anyway. (I know this and you know this and I even claim that I understand what you're saying - let's say that my inner blondness is trying to surface once again).

What about you other people, your spending habits I mean. How often do you stop to think to consider a product's price? If you're thirsty and need to buy a drink, do you make the decision based on your taste or do you first count the cents in your wallet?

[Fundamental]

Only good things about those 1 and 2€ notes would be that we could get more codes.. nothing else

[Schaza]

What about you other people, your spending habits I mean. How often do you stop to think to consider a product's price? If you're thirsty and need to buy a drink, do you make the decision based on your taste or do you first count the cents in your wallet?

I do allways think twice before i buy anything. I don't have money for anything what i don't really need... and sometimes i don't have money even for that. My dad said that i'm not poor, just mingy. Well, i have to be, if i want save some money for future.

Only thing when i do not concider so much is that, when i buy or use some things/services which are done by some small (good) firms. I hate that large companies are pulling a carpet under small enterprisers, and i'm using small enterprisers allways when i can (and when i know that they are honesty).

[BogPoet]

What about you other people, your spending habits I mean. How often do you stop to think to consider a product's price? If you're thirsty and need to buy a drink, do you make the decision based on your taste or do you first count the cents in your wallet?

First, I'll count my cents. Sometimes, I find out I'm not really that thirsty...

[Gauss]

What about you other people, your spending habits I mean. How often do you stop to think to consider a product's price? If you're thirsty and need to buy a drink, do you make the decision based on your taste or do you first count the cents in your wallet?

First, I'll count my cents. Sometimes, I find out I'm not really that thirsty...

In this situation I normally find that out.

[micro]

Our local newspaper ran an article today that Italy and Austria want the ECB to replace the 1 & 2 € coin with paper money.

Does anyone have any idea on what chances there are of this happening and to what purpose it would serve?

Maybe they fear that all the 1 & 2€ coins will fall apart:

[Olivier]

We all forget the fact that more and more payments are done with debit/credit cards...

[Elmo]

Another thing that bewilders me is this: The percentage of bills in miserable condition is significantly higher in southern european countries (Italy, Spain; not so sure about Greece), and right southern european countries request this bill/coin-change. Bills with low denomination tend to become even more worn than those with high denomination. Coins can be used for decades. So why would these countries wish to get more and more bills they need to replace every other year instead of coins?

When you are on an Italian or a Greek terrace there is an unwritten rule:
You leave the coins you got as change behind for the waiter/waitress as a
tip. Because the highest denomination of Italian coins (I am not sure about
Greek ones) is €0,50 (ITL 1000), so the tip would be app. €1. But now,
when you buy a drink that costs €5,25 and you pay with €10, you should
leave the change (€4,75) behind for the waiter/waitress, so you are €10
poorer now, while before the euro you would be ±€6 poorer. So visiting
a terrace, which they really like, is extremely expensive now! That's why
they want to have the €1 and €2 coins replaced by notes.

[Elmo]

People tend to spend coins more easily than notes, because of money illusion: people tend to think coins are nearly worthless, while people tend to think notes are extremely valuable. So if the €1- and €2-coins are replaced by notes, people will spend less, which forces the shop owners to lower the prices, and eventually will cause the inflation to drop.

Yes, but... money is money. If I want to buy something, it doesn't matter whether I use notes or copper coins or even gold coins to pay for it - it'll deminish the balance of my bank account anyway. (I know this and you know this and I even claim that I understand what you're saying - let's say that my inner blondness is trying to surface once again).

To me it doesn't bother now, but the first time I visited Italy the highest coin
denomination was €0,25 (later it became €0,50), and I was very careful
with buying just because of those small bills.