SFB 303 Discussion Paper No. B - 123
Author: Klein, Martin
Title: Monetary and Fiscal Seigniorage: Theory and Evidence
Abstract: This paper is a contribution to the debate about seigniorage in Europe.
The main point is a theoretical and empirical comparison of two measures of
seigniorage: Monetary seigniorage, the change in the stock of base money in
real terms, and fiscal seigniorage, which is defined as the actual resource
transfer received by the government from the central bank. The theoretical
analysis examines the short-run and long-run relationship between these two
measures. The empirical analysis for Germany and Great Britain shows that
there are substantial gaps between monetary and fiscal seigniorage, which
can probably be traced to the institutional implementation of the money
supply process.
Keywords: Seigniorage, European Community, Monetary Policy
JEL-Classification-Number: No. 311
Creation-Date: March 1989
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