seigniorage

(5) Williamson might perhaps more appropriately have called it 'the new seigniorage problem', given the early resistance by the British Treasury to colonies sharing in the seigniorage profits arising from their use of British coin.

Canadian economists Archibald Ritter and Nicholas Rowe explain how seigniorage affects Cuba: "For every dollar that stays in Cuba...the US Federal Reserve can print one more dollar for domestic circulation, without causing domestic inflation, and so one dollar's worth of goods and services gets transferred from Cuba to the US government."

Overall annual budgetary savings--including production and processing costs, seigniorage revenue, start-up, and advertising cost--have been estimated at more than $450 million (Kelley, 1995) to more than $500 million (GAO, 2000; 2002).

The corner ATM is, in effect, a reincarnation of the private mint; the "owner fee" is the seigniorage charged for stamping one's virtual gold into the circulating medium of the physical world.

All of the exercises are standard including discussion of seigniorage revenue functions.

As discussed, the most important threats are: monetary policy implications; seigniorage and deficit issues; multicurrency cards; security and supervision considerations, including fraud and control over foreign vendors; and systemic risk.

Second, nation-states use their currency for seigniorage. That is, they issue more currency than is required by the current level of economic activity.

The first source of losses from dollarization is what is called seigniorage. The right to create domestic currency is valuable for a government because newly printed currency can be issued in exchange for goods and services.

Alternative sources of revenue such as corporation tax, a carbon/energy tax or seigniorage (a tax on profits from assets held by the European Central Bank) may be considered in future.

(i) political pressures to stabilize interest rates; (ii) the time-inconsistency problem of monetary policy; (iii) the theory of optimal seigniorage; (iv) the fiscal dominance hypothesis.

Similarly, because the usage of electronic money is likely to grow relatively slowly, its introduction is unlikely to affect materially the seigniorage revenues received by the Treasury Department in the near term.

Cash Asmussen is looking for his fourth win in the event and partners Seigniorage, who might just be peaking at the right time.

Tabellini (1992), "Seigniorage and Political Instability," American Economic Review, 82, 537-555.

The advantage of metal coins guaranteed by a ruler is obvious: the bearer could feel confident that the face value of the coin was equal to the value of its precious metal, less the seigniorage, the duty levied on the money to cover the costs of coinage.