One learns reading Dornbush and Fischer. The dollar is strengthening against the Euro and all other currencies, and now I know that it means that America is able to tax the rest of the world and extracts a rent from us foreigners. That is called seigniorage. Till now I thought that seigniorage meant the Droit du seigneur (the feudal lord's jus prima nocta). Well, in a way it is the same thing. The painting illustrates the practice.
3 comments:
Droit du seigneur is a myth.
Seigniorage is not.
BTW, isnt it a pity that is a myth? There are myths that should be true.
Post a Comment