We keep seeing references to this wonderful accomplishment of a new Iraqi currency, such as in "McPherson shifts priority from Iraq to presidency" (SN 10/9).

Meanwhile, the Washington Post on Oct. 5 reported that the six denominations of notes will range from 50 dinars, worth about 4 cents, to 25,000 dinars, worth about $18. Loads and loads of paper.

Imagine having to use a piece of paper instead of a nickel coin in transactions. Most countries are going in the opposite direction.

For example, in England, one finds no one-pound notes, only one-pound coins. The same is true of the euro.

At the other end of the spectrum, we've got the 25,000 dinar note.

One wonders whether McPherson knows about the currency reforms in France, Mexico, Italy and probably other countries in the second half of the past century in which, after massive inflation raised domestic prices to outlandish levels, two or three zeroes were lopped off all prices and currency denominations to produce a much more usable system.

Mark Ladenson
professor emeritus of economics