This paper circulates around the core theme of Suppose you are central bank governor of a country together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Suppose you are central bank governor of a country which is experiencing inflationof 100% per month. You have two economic advisors. One advisor tells you that inorder to increase seignorage you ought to raise the money growth rate. The otheradvisor tells you that in order to increase seignorage you ought to reduce the moneygrowth rate.(a) Explain the concept of seignorage, both in words and formally (e.g. algebraically).(b) Which of the two recommendations is correct? Why? (Hint: look up theconcept of the “Laffer curve” and use it to answer this question.)
