Discussion Paper

An incentive-compatible suggestion for seigniorage sharing with dollarizing countries


Abstract: Sixteen countries now treat the U.S. dollar as legal tender. Although dollarizing can help emerging-market countries gain monetary credibility and avoid currency crises, many do not want to give up the seigniorage revenues associated with issuing their own fiat currency. This article offers a proposal for seigniorage sharing.

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Provider: Federal Reserve Bank of Cleveland

Part of Series: Policy Discussion Papers

Publication Date: 2002

Issue: Jun

Order Number: 4