Finally, Canada has decided to eliminate the humble penny from its coinage. This decision was announced as part of the recent Federal Budget. In eliminating the penny, Canada will be joining a host of other countries who have "taken the plunge" in recent years.
No sooner had the announcement been made, than I began to encounter comments (on talk-back radio, and elsewhere) to the effect that "some retailers will use this as an excuse to 'round up' the ticket price of some items, and we'll all get ripped off". In fact, some people are claiming that this development will be inflationary.
Oh really? Apart from using a bit of common sense, let's see what the statistical evidence has to say abut all of this.
