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La sombra monetaria del déficit en la España de la peseta


  • Regina Escario

    () (Universidad de Zaragoza)

  • Marcela Sabaté

    () (Universidad de Zaragoza)

  • María Dolores Gadea

    () (Universidad de Zaragoza)


According to the literature, the predominance of budget deficits conditioned money growth in Spain while the peseta was its currency. The idea of a long-running fiscal interference in monetary dynamics is partly backed by the contribution of the public component to monetary base growth in 1874-1998. This paper confirms the existence of this interference by finding a long-running causal relationship between budget and money for the whole period. The weakening of causality between budget and the monetary base allows us to locate the end of seigniorage in Spain in the mid-1980s. It is not until the 1990s that the weakening of causality between budget and a broader definition of money (Liquid Assets held by the Public) reflected the efforts towards nominal convergence prior to joining the European Monetary Union. KEY Classification-JEL: E5, H6, N1

Suggested Citation

  • Regina Escario & Marcela Sabaté & María Dolores Gadea, 2011. "La sombra monetaria del déficit en la España de la peseta," Investigaciones de Historia Económica (IHE) Journal of the Spanish Economic History Association, Asociacion Espa–ola de Historia Economica, vol. 7(01), pages 151-181.
  • Handle: RePEc:ahe:invest:v:07:y:2011:i:01:p:151-181

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    Cited by:

    1. Matthias Morys, 2016. "Financial supervision to fight fiscal dominance? The gold standard in Greece and South-East Europe between economic and political objectives and fiscal reality, 1841-1939," Discussion Papers 16/05, Department of Economics, University of York.
    2. Escario, Regina & Gadea, María Dolores & Sabaté, Marcela, 2012. "Multicointegration, seigniorage and fiscal sustainability. Spain 1857–2000," Journal of Policy Modeling, Elsevier, vol. 34(2), pages 270-283.

    More about this item


    Deficit; Money;

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations


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