For example if we have no smaller coins, the prices of goods or services will start from one dollar and will increase by the multiples of one dollar. To void this possibility of unfair pricing, coins are issued at different face value to help with pricing of goods and services.
5 This potential negative effect of debt accumulation could arise even though debt accumulation for households and firms has many positive benefits. For example, if we introduce household debt in the above There are different ways to define a vulnerability in a system. The main notion is a state variable that foreshadows the possibility of bad future outcomes.