When and why hyperinflating monetary authorities abandon a currency

Stephen Matteo Miller

Economics Letters, 2016, vol. 141, issue C, 11-14

Abstract: Hyperinflating monetary authorities occasionally abandon the currency with delay to extract remaining seignorage. Modeling the monetary authority as an exhaustible resource extracting monopolist shows the delay increases with higher remaining seignorage or real interest rates or lower seignorage maximizing rates.

Keywords: Monetary Leviathan; Optimal stopping time; Seignorage maximization (search for similar items in EconPapers)
JEL-codes: D92 E31 E41 H21 H27 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176516300015
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:141:y:2016:i:c:p:11-14

DOI: 10.1016/j.econlet.2016.01.017

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().