Özet:

Signature is the difference between the written value on the cost of the money and the cost of production.  Revenue is the income that the state has the right to print money. Inflation tax is the loss of capital for those who hold money in their hands due to inflation.  The use of the Turkish Lira as official currency due to the lack of issuance authority by the Central Bank of the Northern Cyprus Turkish Republic is defined as the dollarization concept. The party with the emission power earns monetary supply and monetary income, while the party with the dollarization is exposed to inflation tax due to the real decrease in the purchasing power of the currency in circulation. With this study; the inflation tax that the Northern Cyprus Turkish Republic is considered to be exposed due to the use of the Turkish Lira has been studied over the years, the findings arising, compared with the amount of aid that the Republic of Turkey has made to the KKTC in the same process.

Özet:

Seigniorage is the difference between the value of the money and production cost. Seigniorage income is what the Government earns via its right to print money. Inflation tax is the loss of capital, due to inflation, of those who keep cash with themselves. The use of Turkish Lira (TRY) as official currency of Turkish Republic of Northern Cyprus (TRNC), because of the lack of emission authority of the Central Bank of TRNC can be classified as dollarization. While the party with emission authority earns seigniorage income, the other party is subjected to inflation tax due to loss in purchasing power of money in circulation. The aim of this study is to investigate the inflation tax that TRNC has been exposed to due to the use of TRY and to compare this with the aid received from Republic of Turkey in the same time frame. 

Anahtar Kelimeler: