Fluctuations in the value of paper money generates an atmosphere of uncertainty in the economy which, in turn, promotes speculative activities. (viii)Fiscal advantages to the Government of the paper currency are undoubtedly very great, especially in times of national emergencies like a war. Paper money means documents with a price stated on them but having no value in them. paper, money.

The Mythical Merits of Paper Money One economic myth is that paper money is wealth. Paper money has no intrinsic value of its own. 2. Merits or Advantages of Paper Money; Advantages and Disadvantages of Paper Money.

These exact things no doubt are costly but overall printing cost is fairly low. Thus, when paper money is demonetized, its value falls to zero. Practically it cost nothing to government. They can keep their cash reserves against liabilities in this form, for currency notes are full legal tender.

Similarly, Paper money has pros and cons too. Printing of paper currency is requires certain special types of paper, ink, and printing technology. The proponents of big government oppose honest money for a very specific reason. Life and death, Plus and Minus, Right and Left, Up and Down. Merits of paper money.

It is economical, since it substitutes a less expensive material than metal for money and conserves the metal for the arts. vii. Cheap and economical: Normally paper money is significantly simpler to issue. Paper money is of very great advantage to the banks. The advantages of the issue of government paper money are: 1. It is easy to produce, move paper money Economically and Humanly but it is also shorter in life. There are always two aspects of each thing we see in our everyday life. It is easily and quickly increased; the printing press is more expeditious than the mine, smelter, and mint. 3.