Retiring a US banknote denomination: setting the objective and defending the pick

If you could remove one denomination of US paper money from circulation, which would you pick? Explain how you would decide, and defend your choice. ```hint Start from the purpose The right bill depends on what removing it is meant to achieve. Settle the goal, and who would bear the cost of the change, before you compare denominations. ``` ### Clarifying Questions - Am I making this call for the government bodies that issue the currency, or as an outside advisor recommending it to them? - What should the change achieve: a lower cost of producing currency, easier everyday transactions, or less use of cash in crime? - May the retired bill's value be replaced by a coin, or does that amount simply stop existing as a single piece of money? - Should I weigh only people in the US, or also the people and banks abroad who hold US dollars? ### What a Strong Answer Covers - An explicit objective and decision criteria set before any bills are compared - A comparison of the realistic candidates, at least the \$1, \$2 and \$100 notes, on usage, cost, disruption and side effects - Who bears the cost: retailers, vending and transit operators, cash-reliant and unbanked people, and holders abroad - A clear recommendation with a transition plan and a way to tell whether it worked - The strongest counterargument, answered with evidence such as other countries' currency changes ### Follow-up Questions - If your plan relies on a coin replacing a note, why have dollar coins failed to catch on in the US before, and what would make this attempt different? - Two years after the change, which numbers would tell you it worked? - Someone argues that retiring the \$100 note would do more good because large bills make illicit cash easier to move. How do you respond, whichever bill you chose?