01748cas a2200241 a 4500 AALejournalIMF000818 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451844368 1018-5941 BD-DhAAL BD-DhAAL Beddies, Christian. Monetary Policy and Public Finances : Inflation Targets in a New Perspective / Christian Beddies. Washington, D.C. : International Monetary Fund, 1999. 1 online resource (25 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper considers the interaction between the private sector, the monetary authority, and the fiscal authority, and concludes that unrestricted central bank independence may not be an optimal way to collect seigniorage revenues or stabilize supply shocks. Moreover, the paper shows that the implementation of an optimal inflation target results in optimal shares of government finances-seigniorage, taxes, and the spending shortfall-from society's point of view but still involves suboptimal stabilization. Even if price stability is the sole central bank objective, a positive inflation target has important implications for the government's finances, as well as for stabilization. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1999/026 Full text available on IMF http://elibrary.imf.org/view/journals/001/1999/026/001.1999.issue-026-en.xml IMF e-Library