Seigniorage or Sovereignty?
نویسنده
چکیده
In this chapter, I will explore two competing approaches to analysis of national currency emission. I will call one the seigniorage view, to be contrasted with what I will call the sovereignty view. Before proceeding, let me say that I am not interested in presenting either a historical analysis, nor will I pursue the etymology of these terms. I will first briefly define the terms as I will be using them, and then will identify the views associated with each. I then argue that the view I identify with sovereignty is more useful for understanding operation of most modern national currencies. While much of the discussion will focus on domestic use of the currency, I will also explore issues surrounding an ” open economy„ and foreign currency reserves.
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