Analysis of the Imperial Rent of Reserve Currency

This article provides an analysis of the economic cost incurred by world through use fiat international reserve currency since end 1971 gold standard system. The uses Quantity Theory Money to provide empirical manifestation how yields income its issuing country provision inflation buffer, which is equivalent what frames as imperial rent currency. then a method estimate cumulative quantity this using data on broad money supply, nominal GDP, and total official foreign exchange holdings in question. estimates that accrued four major currency-issuing states (US, Euro area, UK, Japan) from until 2021, was accumulated channel only, value 11.1 trillion USD, 71 % amount went US singly.