IDEAS home Printed from
   My bibliography  Save this article

Government Gains from Central Bank Seigniorage in Transition Economies: A Comparative Study


  • Jacek Cukrowski


This 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.

Suggested Citation

  • Jacek Cukrowski, 2006. "Government Gains from Central Bank Seigniorage in Transition Economies: A Comparative Study," Problems of Economic Transition, Taylor & Francis Journals, vol. 49(3), pages 54-88.
  • Handle: RePEc:mes:prectr:v:49:y:2006:i:3:p:54-88 DOI: 10.2753/PET1061-1991490302

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

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

    References listed on IDEAS

    1. Marina Bakanova & Lúcio Vinhas de Souza & Irina Kolesnikova, 2004. "Transition and growth in Belarus," Chapters,in: The Economic Prospects of the CIS, chapter 3 Edward Elgar Publishing.
    2. Brown, D. & Deardorff & A. & Djankov, S. & Stern, R., 1995. "An Economic Assessment of the Integration of Czechoslovakia, Hungary and Poland into the European Union," Papers 8, American Institute for Contemporary German Studies-.
    3. Ricahrd E. Baldwin & Joseph F. Francois & Richard Portes, 1997. "The costs and benefits of eastern enlargement: the impact on the EU and central Europe," Economic Policy, CEPR;CES;MSH, vol. 12(24), pages 125-176, April.
    4. repec:wsi:wschap:9789813108448_0012 is not listed on IDEAS
    5. Arjan Lejour & Ruud de Mooij & Richard Nahuis, 2001. "EU enlargement: economic implications for countries and industries," CPB Document 11, CPB Netherlands Bureau for Economic Policy Analysis.
    6. David G. Tarr, 2017. "The Terms-of-Trade Effects of Moving to World Prices on Countries of the Former Soviet Union," World Scientific Book Chapters,in: Trade Policies for Development and Transition, chapter 12, pages 271-294 World Scientific Publishing Co. Pte. Ltd..
    7. Glenn W. Harrison & Thomas F. Rutherford & David G. Tarr, 2017. "Quantifying The Uruguay Round," World Scientific Book Chapters,in: Trade Policies for Development and Transition, chapter 16, pages 363-388 World Scientific Publishing Co. Pte. Ltd..
    8. Sulamaa, Pekka & WidgrÉn, Mika, 2002. "EU-Enlargement and the Opening of Russia: Lessons from the GTAP Reference Model," Discussion Papers 825, The Research Institute of the Finnish Economy.
    9. Andrew Rose, 2005. "Which International Institutions Promote International Trade?," Review of International Economics, Wiley Blackwell, vol. 13(4), pages 682-698, September.
    10. Marina Bakanova & L303272cio Vinhas de Souza, 2001. "Trade and Growth under Limited Liberalization, The Case of Belarus," International Trade 0108005, EconWPA.
    11. Paul Brenton & Natalia Tourdyeva & John Whalley, 1997. "The potential trade effects of an FTA between the EU and Russia," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 133(2), pages 205-225, June.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    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:mes:prectr:v:49:y:2006:i:3:p:54-88. See general 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 Longhurst). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.