IDEAS home Printed from https://ideas.repec.org/a/eee/jjieco/v41y2016icp1-16.html
   My bibliography  Save this article

An endeavor to estimate seigniorage before the end of and immediately after the Pacific War

Author

Listed:
  • Hattori, Takahiro
  • Oguro, Kazumasa

Abstract

This is the first research paper to analyze seigniorage in Japan before, during, and after the Pacific War. As a result of logically categorizing various definitions of seigniorage (opportunity cost approach, monetary approach, and inflation tax), we conclude that these differences pivot on the issue of whether to confine the scope of debts, which is reduced by unexpected inflation, to the usual general government debt or to expand it to the integrated government debt including the monetary base of the Bank of Japan. We also point out the possibility that, in light of the degree of reduction in government debt as a percentage of GDP during and after the Pacific War, the monetary approach or inflation tax (the cases of confining the taxation base to the usual general government debt) are appropriate means to estimate seigniorage obtained by the general government.

Suggested Citation

  • Hattori, Takahiro & Oguro, Kazumasa, 2016. "An endeavor to estimate seigniorage before the end of and immediately after the Pacific War," Journal of the Japanese and International Economies, Elsevier, vol. 41(C), pages 1-16.
    • Handle: RePEc:eee:jjieco:v:41:y:2016:i:c:p:1-16
    DOI: 10.1016/j.jjie.2016.03.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S088915831630003X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jjie.2016.03.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Manfred J. M. Neumann, 1996. "A Comparative Study of Seigniorage: Japan and Germany," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 14(1), pages 104-142, July.
    2. Drazen, Allan, 1985. "A general measure of inflation tax revenues," Economics Letters, Elsevier, vol. 17(4), pages 327-330.
    3. Huff, Gregg & Majima, Shinobu, 2013. "Financing Japan's World War II Occupation of Southeast Asia," The Journal of Economic History, Cambridge University Press, vol. 73(4), pages 937-977, December.
    4. Marty, Alvin L, 1978. "Inflation, Taxes, and the Public Debt," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 10(4), pages 437-452, November.
    5. Carl E. Walsh, 2010. "Monetary Theory and Policy, Third Edition," MIT Press Books, The MIT Press, edition 3, volume 1, number 0262013770, December.
    6. Carmen M. Reinhart & M. Belen Sbrancia1, 2015. "The liquidation of government debt," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 30(82), pages 291-333.
    7. Friedman, Milton, 1971. "Government Revenue from Inflation," Journal of Political Economy, University of Chicago Press, vol. 79(4), pages 846-856, July-Aug..
    8. Mankiw, N. Gregory, 1987. "The optimal collection of seigniorage : Theory and evidence," Journal of Monetary Economics, Elsevier, vol. 20(2), pages 327-341, September.
    9. Fukuta, Yuichi & Shibata, Akihisa, 1994. "A cointegration test of the optimal seigniorage model," Economics Letters, Elsevier, vol. 44(4), pages 433-437, April.
    10. Barro, Robert J., 1982. "Measuring the Fed's revenue from money creation," Economics Letters, Elsevier, vol. 10(3-4), pages 327-332.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hagiwara, Reona, 2020. "Seigniorage and Japanese fiscal sustainability: Simulation analysis using an overlapping generations model," Economic Modelling, Elsevier, vol. 84(C), pages 340-356.
    2. Keiichiro Kobayashi & Kozo Ueda, 2022. "Secular Stagnation and Low Interest Rates under the Fear of a Government Debt Crisis," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 54(4), pages 779-824, June.
    3. SAITO, Makoto & 齊藤, 誠, 2017. "On wartime money finance in the Japanese occupied territories during the Pacific War: The case of instant reserve banks as bad central banks," Discussion Papers 2017-03, Graduate School of Economics, Hitotsubashi University.
    4. Saito, Makoto, 2022. "On expenditure/income discrepancies in national accounts in the presence of two price units," Japan and the World Economy, Elsevier, vol. 64(C).
    5. SHIMASAWA Manabu & OGURO Kazumasa, 2016. "Will Abenomics Save Future Generations?," Discussion papers 16100, Research Institute of Economy, Trade and Industry (RIETI).
    6. Makoto Saito, 2021. "Central Banknotes and Black Markets: The Case of the Japanese Economy During and Immediately After World War II," Advances in Japanese Business and Economics, in: Strong Money Demand in Financing War and Peace, pages 25-56, Springer.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jakob Korbinian Eberl, 2016. "The Collateral Framework of the Eurosystem and Its Fiscal Implications," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 69.
    2. Ferda Halicioglu, 2005. "Active And Passive Seigniorage Revenues: The Case For Turkey 1970-1997," Macroeconomics 0503010, University Library of Munich, Germany.
    3. Patrick Honohan, 1994. "The Fiscal Approach to Financial Intermediation Policy," Papers WP049, Economic and Social Research Institute (ESRI).
    4. Ainura Uzagalieva, 2005. "Fiscal Consequences of Monetary Integration within a Common Economic Area: The Case of Belarus, Kazakhstan and Russia," Post-Communist Economies, Taylor & Francis Journals, vol. 17(4), pages 399-424.
    5. Evans, J. Lynne & Amey, Michael C., 1996. "Seigniorage and tax smoothing: Testing the extended tax-smoothing model," Journal of Macroeconomics, Elsevier, vol. 18(1), pages 111-125.
    6. Tahsin SAADI SEDIK, 2003. "Optimal Seigniorage in Developing Countries: An Empirical Investigation," Working Papers 200307, CERDI.
    7. Adenutsi, Deodat E., 2007. "The policy dilemma of economic openness and seigniorage-maximizing inflation in dollarised developing countries: The Ghanaian experience," MPRA Paper 37134, University Library of Munich, Germany.
    8. Baltensperger, Ernst & Jordan, Thomas J., 1997. "Seigniorage, banking, and the optimal quantity of money," Journal of Banking & Finance, Elsevier, vol. 21(6), pages 781-796, June.
    9. Soldatos, Gerasimos T. & Varelas, Erotokritos, 2014. "The Chicago Tradition and Commercial Bank Seigniorage," MPRA Paper 57721, University Library of Munich, Germany.
    10. Bordo, Michael D & Redish, Angela, 1993. "Maximizing Seignorage Revenue during Temporary Suspensions of Convertibility: A Note," Oxford Economic Papers, Oxford University Press, vol. 45(1), pages 157-168, January.
    11. Kevin M. Kime, 1998. "Seigniorage, Domestic Debt, And Financial Reform In China," Contemporary Economic Policy, Western Economic Association International, vol. 16(1), pages 12-21, January.
    12. Thomas Jordan, 2001. "Monetary control uncertainty and inflation bias," Journal of Economics, Springer, vol. 73(2), pages 125-147, June.
    13. Gerhard R?sl & Karl-Heinz T?dter, 2015. "The Costs and Welfare Effects of ECB's Financial Repression Policy: Consequences for German Savers," Review of Economics & Finance, Better Advances Press, Canada, vol. 5, pages 42-59, November.
    14. Jakob De Haan & Jan Egbert Sturm, 1992. "The Case for Central Bank Independence," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 45(182), pages 305-327.
    15. Hafiz Akhand, 1998. "Marginal tax rate and the optimal collection of seigniorage," Applied Economics Letters, Taylor & Francis Journals, vol. 5(12), pages 797-800.
    16. Kim Oosterlinck & Jeremy Simon, 2015. "Financial Repression and Bond Market Efficiency: the Case of Italy during World War II," Working Papers CEB 15-001, ULB -- Universite Libre de Bruxelles.
    17. Amano, Robert A., 1998. "On the Optimal Seigniorage Hypothesis," Journal of Macroeconomics, Elsevier, vol. 20(2), pages 295-308, April.
    18. Vittorio U. Grilli, 1988. "Seigniorage in Europe," NBER Working Papers 2778, National Bureau of Economic Research, Inc.
    19. Franziska Schobert, 2003. "Euroisation. Assessing the Loss of Seigniorage and the Impact on the Interest Premium in Central European Countries," Revue économique, Presses de Sciences-Po, vol. 54(5), pages 913-935.
    20. SHIMASAWA Manabu & OGURO Kazumasa, 2016. "Will Abenomics Save Future Generations?," Discussion papers 16100, Research Institute of Economy, Trade and Industry (RIETI).

    More about this item

    Keywords

    Seigniorage; Government debt; Monetary base; Inflation; During and after the War;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jjieco:v:41:y:2016:i:c:p:1-16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622903 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.