Dollarization is becoming a viable option for a number of countries, but the loss of seigniorage is a major obstacle. The paper looks at the major seigniorage sharing arrangements available and issues that arise in the design of the new arrangements.dollarization, dollarisation, seigniorage, monetary unions

Zeljko Bogetic

English

Research Papers in Economics

CONTENTS
How to reform the Fund: Meltzer points the way
New Portugal governor • Buiter worries about 
Greenspan's power • Stern criticism • Fazio speaks out on
ethics • Livingstone may damage City's image •Frankfurt's
own goal • SARB changes its employment policy 
Lee Kuan Yew on financial regulation • Australia's 
monetary dilemma • ...and email blunder • Hayami hints
at end to zero interest rate policy • China to improve risk
management • Indonesia not out of the woods yet • Chino
on Asian monetary fund 
Buba may lose debt management • Poland floats zloty •
EU expansion could upset the euro • Doubts over EU fiscal
discipline • Denmark's VAR falls • George casts doubt on
EMU timing • Fund hoodwinked by Ukraine • ECB posts
1999 loss
Furore over governor's pay • Greenspan on pensions • 
Why the dollar dominates the euro
The Central Bank of Russia is the second largest central 
bank in the world and it is highly independent and
completely unaccountable, says Simon Baker.
The ECB’s softly-spoken vice president tells Robert Pringle 
how he implemented the Maastricht Treaty in setting up
the ECB. He also highlights the importance of risk manage-
ment for the organisation and operations of the Bank.
The ECB’s policy and operations have been a success, 
says Thomas Mayer of Goldman Sachs, but its 
communications policy is in trouble and it needs to teach
market participants to think like it does.
Following new changes to the Bank’s  remit, the New 
Zealand's Reserve Bank governor hits back at accusations
that its celebrated "New Model" is in trouble.
Jeremy Foster of PriceWaterhouseCoopers looks at the 
changes needed in central bank corporate governance and
urges greater transparency in financial reporting.
Opinion
Newsmakers
Asia notes
Europe notes 
America notes
Bank of Russia   
Interview: 
Christian Noyer 
A market view
of the ECB
Interview:
Donald Brash
Reporting central 
bank performance
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28
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iiiii
CENTRAL BANKING 
VOLUME X • 1999-2000 • NUMBER 4 
SPECIAL FEATURE
Black Wednesday
Japan’s new economy
Seigniorage and 
dollarisation
Reserve management 
Appointing the MPC
Greenspan on risk 
and moral hazard
Ethics and central 
banking
Obituary
We present a two part special feature. First, Norman 
Lamont, who was the UK’s chancellor of the exchequer
at the time of Black Wednesday, replies to the article by
Stephen Frowen in the last issue of the journal. The
second part features an analysis by John Chown of the
contrasting accounts of Black Wednesday contained in
the autobiographies of John Major, the ex-prime minis-
ter, and Lord Lamont.
The markets have been waiting for Japan to recover 
for years. Richard Werner says the Bank of Japan was
deliberately keeping the brakes on to encourage 
structural reform. This has now been largely achieved,
and the economy really is finally set for rapid growth.
Dollarisation is becoming a viable option for a 
number of countries, but potential loss of seigniorage
is a major obstacle. Zeljko Bogetic of the IMF looks at
the major sharing arrangements available.
The treasurer of the World Bank, Afsaneh Beschloss, 
and Wendy Mendes, senior investment officer, discuss
the results of a survey of reserve managers conducted
by the World Bank.
The way in which the UK chancellor chooses new
independent members of the Bank of England's MPC
is criticised in a Conservative Party report. Neil
Courtis examines the arguments.
Federal Reserve Chairman Alan Greenspan addresses 
how financial technology and risk management have
transformed the financial services industry, and what
challenges this poses for central banks and regulators.
Summary of introductory remarks made by Robert
Pringle, editor, in opening a meeting of the finance
ethics group of the Von Hügel Institute, St Edmund's
College, Cambridge. 
Maxwell Fry
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Seignirage Sharing and Dollarization, Central Banking (U.K.), Vol. X, No.4, 77-88.

http://128.118.178.162/eps/if/papers/0510/0510008.pdf

Seignirage Sharing and Dollarization, Central Banking (U.K.), Vol. X, No.4, 77-88.

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