By some estimates, $185 billion to $260 billion in currency is held outside the United States. a.
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a. What is the value to the United States of the seignorage associated with these overseas dollars? Assume that dollar interest rates are about 6%.
b. Who in the United States realizes this seignorage?
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a The annual value of seigniorage equals the foregone interest on the currency held outside ...View the full answer
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