Government Gains from Central Bank Seigniorage in Transition Economies: A Comparative Study
AbstractThis article presents a comparative study of the creation and distribution of central bank seigniorage in selected countries of the Commonwealth of Independent States (CIS) (Georgia, Kyrgyzstan, Belarus) and selected Central European countries (Poland, Czech Republic) during the transition to a market economy. A comprehensive framework for measuring seigniorage revenues is presented, and estimates of its sources and uses are computed and analyzed. It is shown that the conventional concept of monetary seigniorage does not reflect government gains from money creation in transitional economies. The study also reveals sources of fiscal seigniorage during periods of macroeconomic stabilization accompanied by tight monetary policy. In particular, contrary to the common view, the analysis shows that typically revenues from money creation have not been extensively to finance government expenditures. Nevertheless, the flow of resources from central banks to state budgets in CIS countries remains significant, mainly due to small nongovernment debt portfolios and quasifiscal operations of central banks.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by M.E. Sharpe, Inc. in its journal Problems of Economic Transition.
Volume (Year): 49 (2006)
Issue (Month): 3 (July)
Contact details of provider:
Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=106047
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Nguyen).
If references are entirely missing, you can add them using this form.