could be automatically redistributed to
Some of the costs looked at included the loss of independent monetary policy, global competitiveness, loss of lender of last resort ability, seigniorage
costs, and various other start-up costs.
The key requirement is that the seigniorage
In this context, access to seigniorage
was (at least for colonial administrations) an influential argument favouring a currency board over the obvious alternative of using sterling (or some other appropriate foreign currency) as the domestic medium of exchange.
Countries that already use the dollar extensively presumably do not lose much in terms of seigniorage
, and the financial risk of banks and corporates associated with devaluation could be eliminated.
might appear politically easy to negotiate.
signals that the state's control of money and the state's control of public revenue and expenditure cannot be separated, and public finance is an intensely political process.
We will get all the seigniorage
as those dollars start rising over time.
Price stability eliminates this distortion, but at the same time reduces seigniorage
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.
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.