Evolution of Seigniorage in a Period of Profound Economic Transformations

Abstract

This paper presents an analysis of seigniorage in Colombia in the period 1984-2013, which is characterized by profound technological advances and a number of political, social and cultural events worldwide affecting both global and national economies. These changes, together with modifications in the principles of economic thinking in policy managers, under the pressure of multilateral lending agencies and due to new realities, have led to a series of structural reforms that generated institutional changes both in exchange rate and financial regimes affecting monetary policy, and, therefore, the behavior of primary and secondary seigniorage. Finally, the relationship between these changes and the evolution of seigniorage is addressed.