Removing low-denomination coins not inflationary - BoE research
Rounding would be applied to total bill and not individual items, paper argues
Getting rid of low-denomination coins from the UK economy would not be inflationary, research from the Bank of England argues.
In a blog post published on August 22, Marilena Angeli and Jack Meaning consider the impact removing one and two pence coins from circulation would have on prices under a rounding framework.
Their analysis suggests this measure “would have no significant impact on prices because price rounding would be applied at the total bill level, not on individual items,” the
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