Palau uses the U.S. dollar as its currency. This has the advantage of bypassing the expense of running a central bank. Also, the currency is completely convertible, and price stability is reasonably well ensured, as Palau does not have the ability to print currency. The rate of inflation was less than 3 percent a year from 1996-98.
The graphic arts are highly developed in Palau. In the past the village meetinghouse was the center of both visual and performance arts. The end gables (bai) of these houses and the interior beams were decorated with low-relief painted carvings, depicting histories of the village and its relationships with other villages.