Seigniorage, Inflation and Dollarization Term Paper by Quality Writers

Seigniorage, Inflation and Dollarization
An analysis of the benefits of seigniorage, focusing on the country of Columbia and its inability to capitalize fully on the benefits of seigniorage.
# 100899 | 1,417 words | 4 sources | APA | 2008 | US
Published on Feb 10, 2008 in Economics (Inflation) , Economics (Macro)

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This paper briefly explains the concept of seigniorage and outlines the reasons why seigniorage is considered a valuable taxing tool by governments around the world. The paper focuses on Columbia and why Columbia is unable to capitalize fully on the benefits of seigniorage because of the U.S. dollar's impact on the economy in that country.

Table of Contents:
Seigniorage (And Inflation) Explained
Colombia and Seigniorage

From the Paper:

"Another reason these factors have negatively impacted upon Colombia's ability to profit from Seigniorage is that the peso has not always been the preferred currency among consumers. Because of the difficulties in the Colombian government and economy, and the fact that many U.S. dollars are available as alternate currency, many consumers have favored the dollar over the peso. This has resulted in people utilizing the dollar as a first alternative and the peso as a second in many cases. At a minimum, it has resulted in consumers using dollars as a parallel alternate, thereby "cutting the profits" that the government would make if the peso were the only currency. In effect the Colombian government has lost its monopoly in creating currency."

Sample of Sources Used:

  • Aisen, A., and Veiga, F. (2005). The political economy of seigniorage. IMF Working Paper. Retrieved 25 November 2006 from
  • Andolfatto, D. (2006). Macroeconomic theory and policy. Department of Economics, Simon Fraser University. Manuscript. Retrieved 25 November 2006 at dandolfa/macro2006.pdf.
  • Congressional Budget Office. (2005). Cost estimate. Retrieved 26 November 2006 from
  • Maroney, T. (n.d.) Backgrounder: Dollarization. Initiative for Policy Dialogue. Retrieved 26 November 2006 from

Cite this Term Paper:

APA Format

Seigniorage, Inflation and Dollarization (2008, February 10) Retrieved December 03, 2023, from

MLA Format

"Seigniorage, Inflation and Dollarization" 10 February 2008. Web. 03 December. 2023. <>