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Small-Denomination Paper Currency as the Focus of Supply-Reduction Drug Policy

Pennsylvania State University

Eric Hains

Pennsylvania State University

Efforts to impede the supply of illegal drugs and the laundering of illegal drug money have been expensive and largely ineffective. The authors propose that supply-reduction drug policy concentrate on impeding the reintroduction into the banking system of the large volumes of small-denomination paper currency (primarily $1, $5, $10, and $20 bills) generated in street-level drug sales. Such highly focused policy might better achieve the supply-reduction goals of the "war on drugs" advocates and the harm-reduction goals of drug legalization advocates.

Criminal Justice Policy Review, Vol. 12, No. 1, 3-25 (2001)


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