Seignorage: Past and Modern Exploitation

This research will evaluate how countries struggling with common economic factors can rely on seignorage to boost their economies during a financial crisis or progress to become an emerging economy in a short period of time- the common factors faced by EU countries in the pre – Delor’s era that pushed them to resort to seignorage. We will then scrutinize the quandary caused and control tools used to curtail the predicaments caused by seignorage such as hyperinflation and currency devaluation. Furthermore, we will explore the benefits that can be created from effective utilization of seignorage such as ease of low-cost liquidity, healthy inflation, growth in GDP, employment, innovation, infrastructure and improved credibility of the local currency in the international foreign exchange market. In the end, we will explore how seignorage is a seraphic or atrocious tool for income generation for the local government in Pakistan.