Seignorage in High Indebted Developing Countries
AbstractSeignorage is the capital gain generated by the creation of reserve money. The literature on seignorage shows that countries with highly developed and deep financial systems generate few resources relative to national income (or government revenue) from seignorage. By contrast, countries with shallow financial systems and profligate governments appear to gain access to large amounts of real resources when they create reserve money. Results obtained in this paper suggest there is no anomaly. Highly indebted developing countries resorting to money creation to finance their activities do not generate large amounts of seignorage, particularly on a sustained basis. In fact, when all of the consequences of rapid reserve money growth are considered --- including the increased local currency cost of servicing and amortizing external debt due to exchange rate depreciation --- these countries incur a net loss from reserve money creation.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by EAGER Publication/BHM in its series Equity and Growth through Economic Research with number 58.
Length: 39 pages
Date of creation: 2000
Date of revision:
Contact details of provider:
Postal: 1800 North Kent Street, Suite 1060. Arlington, Virginia
DEBT ; MANAGEMENT ; DEVELOPING COUNTRIES ; INFLATION ; EXCHANGE RATE;
Find related papers by JEL classification:
- E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
- H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
- H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
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: (Thomas Krichel).
If references are entirely missing, you can add them using this form.