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Topic: Seigniorage

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	Seigniorage - LoveToKnow 1911
		The employment of a seigniorage of about 1% on the "sovereign" was suggested by the proceedings of the Paris Monetary Conference of 1867, in order to bring about an assimilation of English and French money.
		The definitive results obtained may be briefly stated as follows: (1) A seigniorage charge is the same as a debasement, but its evil effect may be avoided by limiting the amount of coin issued.
		A heavy seigniorage on gold would tend to lower the profits derived from the gold mines of the world, and might even compel the abandonment of the least productive ones.
	www.1911encyclopedia.org /Seigniorage (463 words)

	Seigniorage in the Age of Scriptural Money
		Seigniorage is the profit that accrues to the issuing authority when money is created.
		To explain and illustrate full seigniorage, let me present a scenario, "the case of the perfect counterfeiter." Imagine a counterfeiter of such sublime skill that he will never be caught and his bills will never be distinguishable from official banknotes.
		Seigniorage will not lead to hyperinflation if we establish the principle and maintain the practice of two-way convertibility: money converting into goods and goods converting into money, which is as close as we can get to the spirit of barter without losing the many advantages of modern economics and technology.
	www.geocities.com /pierre_parisien_cea/seigniorage.htm (3250 words)

	Seigniorage Reform
		Nevertheless, seigniorage reform, as we propose it, would definitely solve the problems of monetary safety, control of the quantity of money, legitimacy of the creation of money, and it can considerably contribute to solving problems of government finance as well as wider problems of financial and economic stability.
		Seigniorage reform consists of two elements which can be seen as two sides of the same coin.
		This twofold goal of seigniorage reform — restoring the public prerogative of creating money, and putting an end to the creation of sight deposits by the banking system — can be achieved by two legal measures combined with a technical measure, all of which are surprisingly simple, and easy to implement.
	www.centrostudimonetari.org /seignioragereform.html (3227 words)

	Seigniorage - Wikipedia, the free encyclopedia
		Seigniorage, also spelled seignorage or seigneurage, is the net revenue derived from the issuing of currency.
		It arises from the difference between the face value of a coin or bank note and the cost of producing, distributing and eventually retiring it from circulation.
		Currently under the rules governing monetary operations of major central banks, seigniorage on bank notes is simply defined as the interest payments received by central banks on the total amount of currency issued.
	en.wikipedia.org /wiki/Seigniorage (913 words)

	[No title]
		Thus external seigniorage is the advantage resulting, for a country, from the fact that it may impose on independent countries the use of its currency.” The U.S. collected seigniorage from countries in the Bretton Woods system by requiring that they hold an unlimited amount of dollars.
		Seigniorage Payments for the Use of the Dollar: 1977- 1995 Jefferson extends the paper of Barro (1982) to a longer time period, which allows him to check whether the importance of seigniorage in government financing continued to persist throughout later periods.
		Seigniorage is often seen as “a ready source of finance in an emergency, as evidenced by wartime suspensions of the gold standard.” By giving up the domestic currency a government cannot access this easy and fast remedy to short-term government financing requirements.
	www.sfu.ca /~dandolfa/seigniorage.doc (6543 words)

	LS-377: TREASURY ASSISTANT SECRETARY FOR INTERNATIONAL AFFAIRS EDWIN M. TRUMAN TESTIMONY BEFORE THE SENATE BANKING ...
		Looking at seigniorage sharing narrowly, in principle, a decision by the United States to share the seigniorage revenues associated with the increased amount of dollars in circulation as a consequence of a country's decision to dollarize would not cost the U.S. taxpayer anything.
		The proposed legislation is one approach to arrangements for potential seigniorage sharing, that is, pass legislation to give the Treasury Secretary discretionary authority to rebate seigniorage to a specified degree to any country that makes such a request as long as it meets certain conditions.
		Thus, any formula for sharing seigniorage inherently would be only an approximation of the actual seigniorage "lost" by the dollarizing country or "gained" by the United States as a result of a country's decision to dollarize.
	www.treas.gov /press/releases/ls377.htm (2544 words)

	Appendix - Creating New Money
		Three factors have to be taken into account: first, the amount of existing seigniorage from coining; second, a possible surplus in foreign exchange inflows; third, that part of central banks’ annual net profit which comes from lending domestic currency (as contrasted with that part which comes from lending national stocks of foreign reserves).
		The annual value of seigniorage will come from issuing the annual addition to M. As we have said, it is not to be confused with the special profits of today’s commercial banks that arise from interest income on additions to M1.
		So annual seigniorage revenue foregone today can be calculated by starting from the annual addition to M and then subtracting interest on lending the foreign exchange surplus as well as the value of new coin (Table 4, line G).
	jove.prohosting.com /marcosab/appendixcreating.html (7506 words)

	Fact Sheets - Seigniorage Revenue - The Bank in Brief - Publications and Research - Bank of Canada
		Seigniorage is the net revenue derived from the issuing of coins or bank notes.
		Seigniorage is the difference between the interest earned on the government's securities portfolio, and the costs of producing and distributing bank notes.
		Seigniorage revenue thus allows the federal government to finance a portion of its expenditures without having to collect taxes.
	www.bankofcanada.ca /en/backgrounders/bg-m3.html (505 words)

	[No title]
		In a country as Austria, NB is independent to the State, and holds exclusively the functions of monetary issuing, establishing monetary policies with the aim of maintaining internal and external stability of the currency, and the supervision of commercial banks.
		A great part of the seigniorage, handed over to the private or the banking sector, might show, that the NB does not function according to the principles of an “open economy with free competition”, as it is provided in the Maastricht-Treaty in order to prevent distortions due to competition.
		But one must emphasize that the calculations of the gross seigniorage for Austria and Germany were realized in accordance with the concept of opportunity costs, and not according to the concept of inflation as is the situation of Romania.
	homepage.univie.ac.at /adelina.gschwandtner/seign.doc (9474 words)

	Kravchuk: Seigniorage and the Inflation Tax
		The sum of the inflation tax and seigniorage is equal to the real (i.e., inflation-adjusted) change in monetary holdings, or real balances.
		During the early period of Ukraine's independence, roughly from late 1991 through mid-1994, the government derived a significant amount of revenue from its monopoly in supplying base money.[6] In fact, during this period, the government's command over economic resources reached magnificent proportions, in some periods exceeding 100 percent of quarterly GDP.
		The point at which inflation tax revenues turn downwards depends upon the semi-elasticity of real balances to changes in inflation.[7] On the basis of a limited number of quarterly observations, Havrylyshyn, et.
	www.huri.harvard.edu /workpaper/kravchuk/seignoir.html (1094 words)

	SEIGNIORAGE - Online Information article about SEIGNIORAGE
		SEIGNIORAGE, the due levied by the authority that possesses the right of coining on the See also:
		The employment of a seigniorage of about 1% on the " sovereign " was suggested by the proceedings of the See also:
		The definitive results obtained may be briefly stated as follows:—(r) A seigniorage charge is the same as a debasement, but its evil effect may be avoided by limiting the amount of coin issued.
	encyclopedia.jrank.org /SCY_SHA/SEIGNIORAGE.html (715 words)

	AmosWEB is Economics: Encyclonomic WEB*pedia
		Seigniorage results because the face value of paper bills and metal coins exceeds the cost incurred by government in their production.
		This fee was termed "seigniorage" as an extension of the word "seignior," which was commonly used in reference to a feudal lord or ruler.
		While seigniorage and any inflation tax that might result is generally not a major issue in modern economies, it can be problematic if government abuses its authority to print and mint currency.
	www.amosweb.com /cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=seigniorage (888 words)

	Seigniorage
		Seigniorage was the difference between the face value of coins and the cost of producing them, effectively a tax on the public.
		Note that the seigniorage for the Treasury from the sale of coins occurs at the time of sale rather than through rebates from the Fed, as with the sale of notes.
		The government cannot avoid returning the so-called seigniorage to the private sector in the form of increased spending, lower taxes, or reduced borrowing.
	wfhummel.cnchost.com /seigniorage.html (1035 words)

	seigniorage and Stock Trading at TradeStars + Stock Trading (Site not responding. Last check: 2007-10-13)
		Firstly that the markets are fair seigniorage, simply reflecting the undeniable laws of supply and demand, few hundred years, that economic activity has increased exponentially.
		As world economies boom and in value for seigniorage the seconds to minutes they own the stock, allowing them to lock in I am concerned that some stock traders dont fully understand the seigniorage level of risk they are assuming.
		I am concerned that some people may be lured into the false belief that seigniorage is a surefire strategy to Inc. issued a report that describes the major problems and abuses in the seigniorage industry and summarizes the legal actions brought to date.
	www.tradestars.com /content/seigniorage.asp (234 words)

	[No title]
		Retaliation could take the form of all issuers in the union increasing their attempts to collect seigniorage, or of members in the union raising barriers against the use of the currencies of offending issuers.
		First it was, along with the state banks, part of a multiple issuer system, and it was therefore in a position to raise seigniorage at the expense of the rest of the system.
		It continued to be the case, of course, that note redemption was the means of controlling seigniorage incentive problems, and mechanisms for eliminating the suspension of note convertibility were put in place.
	www.eh.net /Clio/Conferences/ASSA/Jan_95/Rolnick.shtml (2830 words)

	IngentaConnect Seigniorage and public good in an OLG model with cash-in-advance ... (Site not responding. Last check: 2007-10-13)
		This paper is a contribution to the theory of the optimal monetary policy in overlapping generations models with a cash-in-advance constraint applying on old age consumption purchases.
		We are particularly interested in the study of seigniorage when the latter is used to finance public goods valued by consumers.
		We show that the optimal rate of money growth may be strictly higher than the one which maximizes steady-state seigniorage: the optimal amount of seigniorage may lie on the decreasing part of the Laffer curve of seigniorage.
	www.ingentaconnect.com /content/ap/re/2002/00000056/00000004/art00281 (300 words)

	Gavin
		Finding a way to compensate dollarizing economies for this lost seigniorage would thus remove a financially marginal but potentially potent political obstacle to dollarization, leaving the decision whether or not to dollarize to be decided on other, more germane issues.
		The US would appropriate an annual amount equal to the estimated loss of seigniorage - equal to the loss of interest on the international reserves that the country's central bank has lost - and transfer it to the central bank or finance ministry of the country that has decided to adopt the dollar.
		First, it injects the seigniorage issue into the annual budgetary process, generating the potential for misunderstanding and political frictions down the road and exposing the dollarizing economy to the risk that some future Congress will change its mind and fail to compensate the country for lost seigniorage.
	banking.senate.gov /99_07hrg/071599/gavin.htm (3546 words)

	Kravchuk: Who Paid the Inflation Tax?
		As can be seen, household seigniorage remains relatively flat during this five-year period, gradually falling to nearly zero by early 1995.
		Enterprise seigniorage, on the other hand, tracks much more closely with total M2-calculated seigniorage, spiking in mid-1993, but falling precipitously later that year when inflation consistently exceeded the maximum sustainable level.
		The enterprise and household seigniorage levels appear to contrast even more sharply in Graph 11, which isolates the two in the absence of total M2 seigniorage.
	www.fas.harvard.edu /~huri/workpaper/kravchuk/paid.html (1574 words)

	Bretton Woods and the Forgotten Concept of International Seigniorage
		The difference in value, between the face value and value of actual gold or silver content, was the seigniorage gain.
		They can, as a nation, pay for imports with the seigniorage gain accruing from the expansion of international reserve holdings of their currency.
		The bancor plan would have made the gain from international seigniorage partially or fully accessible for development assistance, instead of, as it is now, squandering it in support of the world richest nation and its over-consumption.
	sustecweb.co.uk /past/sustec11-5/bretton_woods_and_the_forgotten.htm (1435 words)

	Assistant Secretary of Treasury Truman on Dollarization, 2/8 (Site not responding. Last check: 2007-10-13)
		Assistant Secretary of Treasury for International Affairs Edwin Truman cautioned members of Congress that a proposal to offer to share seigniorage revenues that may accrue as a result of a country's decision to adopt the U.S. dollar as its national currency could be very risky.
		A potential risk of the United States offering to share seigniorage is that "it may imply a degree of U.S. endorsement or ownership of a country's decision to dollarize," said Truman.
		Seigniorage is the profit a country earns when it issues a currency.
	www.usembassy.it /file2000_02/alia/a0020822.htm (2963 words)

	:: BlackElectorate.com ::
		The bill mandates that seigniorage, the profit made off of the issue of a currency, be shared with any foreign country that officially dollarizes with 85% of the profit going to the dollarized nation and 15% going to the United States.
		He argued that the seigniorage should be split 50%-50% and he introduced an amendment to that effect.
		Leach's framing of the 15% in seigniorage as a "nice profit" seemed to contradict Rep. Ryan's earlier argument that the U.S. was performing the procedure "at cost" with no real profit.
	www.blackelectorate.com /print_article.asp?ID=159 (1581 words)

	Banki - Montly Scientific-Analytical Journal of National Bank of Georgia (Site not responding. Last check: 2007-10-13)
		This phenomenon cannot be easily explained by the concept of monetary seigniorage (frequently used in the economic literature), and requires deeper analysis of the sources of central bank revenues.
		The distribution of the total gross seigniorage in subsequent years as a fraction of GDP is presented in Figure 2.
		Since total seigniorage is used to cover all central bank expenses it usually overestimates flow of the resources from the central bank to the budget (Figure 5).
	www.nbg.gov.ge /journal/b4/doc/b4_3_e.htm (2378 words)

	seigniorage - definition by dict.die.net (Site not responding. Last check: 2007-10-13)
		seigniorage n : charged by a government for coining bullion
		Something claimed or taken by virtue of sovereign prerogative; specifically, a charge or toll deducted from bullion brought to a mint to be coined; the difference between the cost of a mass of bullion and the value as money of the pieces coined from it.
		A share of the receipts of a business taken in payment for the use of a right, as a copyright or a patent.
	dict.die.net /seigniorage (93 words)

	Investors Hub - NO QUARTER FOR CORRUPTION (Focussing on The Fed./FRBS) Post #2239
		Net seigniorage is the difference between the cost of putting money into circulation and the value of the goods the money will buy.
		One way to think of seigniorage is as a flow of revenue over time.
		By holding notes it is as if he is giving the issuing government an interest-free loan.
	www.investorshub.com /boards/read_msg.asp?message_id=13727942 (688 words)

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