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An incentive-compatible suggestion for seigniorage sharing with dollarizing countries

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  • Owen F. Humpage

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.

Suggested Citation

  • Owen F. Humpage, 2002. "An incentive-compatible suggestion for seigniorage sharing with dollarizing countries," Policy Discussion Papers, Federal Reserve Bank of Cleveland, issue Jun.
  • Handle: RePEc:fip:fedcpd:y:2002:i:jun:n:4
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    References listed on IDEAS

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    Cited by:

    1. Kenneth P. Jameson, 2003. "Is It Possible to De-Dollarize? : The Case of Ecuador," International Journal of Political Economy, Taylor & Francis Journals, vol. 33(1), pages 42-60.
    2. Ms. Nombulelo Braiton, 2011. "Dollarization in Cambodia: Causes and Policy Implications," IMF Working Papers 2011/049, International Monetary Fund.

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