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Small change amnesty

Apparently Britons stashed or threw away £133bn in small change in 2005. Does this affect the economy and if everyone banked their small change in these credit crunch times would it help? Or am I being daft?

mormess Thurs 24/07/08 14:45

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squarebear
Thurs 24/07/08
14:48

Unless my maths are wrong, I make it that every man woman and child in the UK threw away approximately £2300 each?!

I find this rather hard to believe. Where did you get your figures from?

mormess
Thurs 24/07/08
14:52

Question Author

http://news.bbc.co.uk/1/hi/magazine/7522426.st m

"in 2005, Britons discarded or stashed away £133m in unwanted coppers, according to Virgin Money. "

Whoops, I meant million! sorry! But still, that's a lot isn't it?

Wouldn't it be better in bank accounts?

Oneeyedvic
Thurs 24/07/08
15:04

Which is £2.30 per person

mormess
Thurs 24/07/08
15:50

Question Author

okay, i'm not so good with numbers. it just seemed like a lot at the time.

<goes and sits in the corner with dunce's hat on.>

buildersmate
Fri 25/07/08
08:06

........ and I'll wager most of the £2.30 was stashed temporarily, not thrown away - piggy banks, little boxes in the corner of the cupboard. It doesn't take much imagination.
Must have been another slow day for news yesterday - need to fill the column inches with something.

burston
Fri 25/07/08
08:15

I think people sometimes drop money and cant be bothered to pick it up if its odd pennies (although Im sure kids would if they saw it ) I remember a piece in the local paper a man picked up £1.30 in the streets around the town in one week

Tom Braider
Fri 25/07/08
11:53

Money - ie notes and coins - that is taken out of circulation amounts to a gift to the issuing bank of the face value of that money. If it is put back into circulation, as happens when you either spend it or bank it, then the bank once again has to guarantee the face value. To destroy or permanently hoard notes and coins actually has a (small) counter-inflationary effect; to return that money to the general supply has a (small) inflationary effect. But inflation can be good: in times of slow growth or recession, there is not enough buying power to consume the goods and services produced by the national economy. Anything that enables more consumption will, in theory, have a beneficial effect - if you like the capitalist system, that is.

mormess
Mon 28/07/08
10:32

Question Author

Thanks all, and especially Tom - that really answers my question! Just thinking of a friend who collects £2 coins and wondering...

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