model to stress that dollarization implies the loss of independent monetary policy and of seigniorage, yet the significance … seigniorage loss or using Mundellian optimal currency area criteria. However, outcomes are rather different if credibility is … absent and dollarization can serve as a commitment device: the welfare impact of dollarization is ambiguous, and seigniorage …

This paper shows that the optimal extraction of seigniorage implies a strong tendency for inflation to fall over time …;tax-smoothingquot; theory of government deficits, which predicts that the inflation tax follows approximately a martingale, and of models of …

command over real resources through its ability to issue fiat money. They are (1) seigniorage (the change in the monetary base …

seigniorage by issuing fiat money in echange for real resources. One insightful result is that , with contemporaneous perceptionof … solution for maximal seigniorage is the reputatoinal equilibrium. More generally , the analysis shows that the objective of … maximal seigniorage produces an equilibrium inflation rate equal either to a generalization of the Friedman elasticity …

This note extends the theory of the revenue maximizing rate of monetary growth to the case of a temporary suspension of …

determination of the revenue received from seigniorage. If the country goes further and uses a foreign money, it loses all … seigniorage. This paper uses an optimal inflation tax approach to analyze the consequences for optimal rates of income taxation … and welfare of the alternative exchange rate and monetary arrangements. From the viewpoint of seigniorage, a system in …