Li, Yiting; Matsui, Akihiko - In: Journal of the Japanese and International Economies 23 (2009) 4, pp. 407-426
circulation of currencies and welfare in a two-country two-currency search-theoretic model. Each government finances public goods … by means of seigniorage. Compared with a regime with two local currencies, a regime with one international currency … allows the issuer of the international currency to reduce the inflation tax while collecting more seigniorage, and forces the …