[Publius]

The Federal Reserve floated a trial balloon about a month ago stating that this would be one strategy for increasing the velocity of money in the event of deflation.

The other strategy would be to place a date/time stamp on Federal Reserve Notes that would have the face value of the FRN decrease over time. A $20 bill held too long would decrease in value, for example, to $15.

They're trying it in Japan first.

[taxed2death]

I believe if that were to happen here, polititians who vote for this, or people who are responsible for this, would probably be hanging from the corner street lamps in short order.

[Fraulein]

A $20 bill held too long would decrease in value, for example, to $15

A scary proposal. But what would prevent them from exchanging the notes at the bank for new $20 bills right before the date of depreciation?

[arete]

They're trying it in Japan first.

Yep, Japan does seem to be the place to try out all the "unconventional" means and methods.

Richard W.

[Fraulein]

The other strategy would be to place a date/time stamp on Federal Reserve Notes that would have the face value of the FRN decrease over time. A $20 bill held too long would decrease in value, for example, to $15.

They're trying it in Japan first.

I am looking for more information on this. Do you have a link to an article, or remember where you first read about this? Any help would be greatly appreciated. Thanks.