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Author Question: What is seigniorage? What are the factors that determine whether a currency should emerge as the ... (Read 21 times)

abarnes

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on: Jun 30, 2018
What is seigniorage? What are the factors that determine whether a currency should emerge as the dominant reserve currency?
 
  What will be an ideal response?

Question 2

Explain what are the factors that shift the DD Schedule.
 
  What will be an ideal response?


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janieazgirl

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Reply #1 on: Jun 30, 2018
Answer to Question 1

The difference between the exchange value and the cost of producing a money. Stability of value, size of domestic economy relative to international transactions.

Answer to Question 2

A change in government demand, change in Taxes, a change in investment, change in domestic prices, change in foreign prices, changes in the consumption function and a demand shift between foreign and domestic goods.


abarnes

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Reply 2 on: Jun 30, 2018
Gracias!

xthemafja

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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