Seignorage pooling of EMU, pool bias and seignorage change by the Euro

Nikolaus K. A. Läufer

No 323, Discussion Papers, Series I from University of Konstanz, Department of Economics

Abstract: To deal with changes of capitalized seignorage due to EMU, we supply the still missing capital-theoretical framework. We show that seignorage pooling of EMU is composed of two components, a dynamic component and a static component. By its dynamic component, the pool provides insurance against seignorage losses from changes of national shares in European seignorage, while the static component is reflecting a problematic pool-bias. The seignorage model is then applied to simulate EMU-changes of capitalized seignorage in two scenarios for Germany. Estimates of changes in the literature are examined: Finally, recent (Dec. 6, 2001) decisions by the ECB with regard to seignorage-pooling are evaluated.

Keywords: European Monetary Union (EMU); Euro; seignorage; seignorage pooling; seignorage change; pool bias (search for similar items in EconPapers)
JEL-codes: E59 F33 F36 (search for similar items in EconPapers)
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:kondp1:323

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