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Can a government always collect more seigniorage simply

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Reference no: EM13868933

1. Can a government always collect more seigniorage simply by letting the money sup- ply grow faster? Explain your answer.

2. Assume that a country's in?ation rate was 100 percent per year in both 1990 and 2000 but that in?ation was falling in the ?rst year and rising in the second. Other things equal, in which year was seigniorage revenue greater? (Assume that asset holders cor- rectly anticipated the path of in?ation.)

Reference no: EM13868933

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