Enter your PIN http://xtube.in.net xtube Optimal tax theory has little to do with optimal monetary policy. Tax revenues from seignorage in the United States were just 0.2 percent of GNP in 1989 and have never exceeded 0.5 percent of GNP in peacetime. Estimates of the area under the money-demand triangle vary, but the 0.5 percent of GNP estimate that could be formed as the product of the money stock and the nominal interest rate is surely a gross overestimate, and the magnitude of this deadweight loss is small relative to any other real consequence of monetary policy.