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Economics/ATM Accepting Coins Currency ?.

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Question
Dear Prof Dr Michael

http://en.wikipedia.org/wiki/Automated_teller_machine
http://en.wikipedia.org/wiki/Coin

Assuming that $50, $100 are manufactured as coins then can ATM Machine accept (input) and output to the Customer who wants to withdraw money in the forms of coins ?.

Awaiting your reply,

Thanks & Regards,
Prashant S Akerkar

Answer
I hope you don't mind if I answer both questions in one response.

Regarding machines that accept coin exchanges, yes, absolutely.  Vending machines have been able to accept and issue coin currency in both an accurate and timely manner, so there's no reason an ATM couldn't be made which does the same.

Regarding why paper money tends to have a higher value, I'm not certain.  In my best guess, I'd have to say this: During ancient times, and in many places even in modern times, coins were the only available currency.  It was much easier to mold or stamp soft metals like silver and gold than it was to hand-paint paper currency in the pre-printing press era.  Inflation is a constant influence which reduces the purchasing power of currency, however.  It's possible that as cultures required higher or different denominations of currency that they eventually resorted to paper currency as technology made that the cheaper/safer option, but kept coins in their devalued state.  Again, I'm not 100% certain of that, it's just an educated guess.

I'm also sorry to say that I will not be answering any more questions on AllExperts.com.  My life has taken a turn that has required me to end my time as an economist and focus on supporting my family.  I wish you the best.

Sincerely,
Mike

Economics

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Michael Taillard

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Accepts most economic questions

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Consulting with major corporations, government agencies, political organizations, small businesses, non-profits, start-ups, and even individual people. Teaching at universities around the world, and developing original coursework. Performing original research and analysis. Writing books and scientific studies.

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American Economics Association

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http://www.barnesandnoble.com/s/michael%20taillard You can also check Proquest for a small selection of my research.

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PhD (Financial Economics; honors) -- MBA (International Business Finance; honors) -- Grad School Certificate (International Business Management; honors) -- BS (International Business Economics; honors) -- AA (Business Administration; honors) -- Certificate (Chinese Language and Culture) -- Trade School (Transportation Logistics; honors)

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