Daniel, Betty C. - In: European Economic Review 71 (2014) C, pp. 228-243
A country participating in a monetary union is constrained by loss of control over seigniorage revenue. Once the … government reaches its fiscal limit on ordinary taxation, it cannot turn to seigniorage for financing. We show that a monetary … union country can increase its seigniorage revenue by reissuing its own currency even as it fully honors all outstanding …