The Political Economy of Seigniorage /

While most economists agree that seigniorage is one way governments finance deficits, there is less agreement about the political, institutional, and economic reasons for relying on it. This paper investigates the main determinants of seigniorage using panel data on about 100 countries, for the peri...

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Détails bibliographiques
Auteur principal: Aisen, Ari
Autres auteurs: Veiga, Francisco Jose
Format: Revue
Langue:English
Publié: Washington, D.C. : International Monetary Fund, 2005.
Collection:IMF Working Papers; Working Paper ; No. 2005/175
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Accès en ligne:Full text available on IMF
Description
Résumé:While most economists agree that seigniorage is one way governments finance deficits, there is less agreement about the political, institutional, and economic reasons for relying on it. This paper investigates the main determinants of seigniorage using panel data on about 100 countries, for the period 1960-1999. Estimates show that greater political instability leads to higher seigniorage, especially in developing, less democratic, and socially polarized countries, with high inflation, low access to domestic and external debt financing and with higher turnover of central bank presidents. One important policy implication of this study is the need to develop institutions conducive to greater economic freedom as a means to lower the reliance on seigniorage financing of public deficits.
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Description matérielle:1 online resource (26 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accès:Electronic access restricted to authorized BRAC University faculty, staff and students