Seigniorage payments and the Federal Reserve’s new operating regime

Bryan P. Cutsinger and William Luther

Economics Letters, 2022, vol. 220, issue C

Abstract: We consider the Federal Reserve’s remittances to the Treasury and extend the estimates offered by Barro (1982) and Jefferson (1998) to assess the net effect of the Fed’s new operating regime on seigniorage payments. Most measures indicate that the Fed’s new operating regime has increased the level of seigniorage and its relative importance in total tax receipts. Whether seigniorage from domestic and foreign holdings of U.S. currency has become more or less important as a source of revenue depends on the measure of seigniorage used.

Keywords: Seigniorage; Federal Reserve; Dollar; Interest on reserves; Floor system (search for similar items in EconPapers)
JEL-codes: E58 E62 H22 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:220:y:2022:i:c:s0165176522003548

DOI: 10.1016/j.econlet.2022.110880

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