Okay, I'll take your point on inflation, but I think the logical first step is to eliminate pennies. The next logical step IMHO is to make the dollar coin easier to identify - current dollar coins are too much like a quarter. Canada's 2-dollar coin (the "twonie") is a good example

- wrap a small coin inside a larger one. Or just make it a little larger in diameter (not in thickness - that's what keeps people from using 50-cent pieces, I think).

Vending machines will have to change regardless - to accept a $2 bill, for instance.