Seigniorage as a tax: a quantitative evaluation
In this paper we analyze the efficacy of seignorage as a tax associated with various monetary arrangements in a computable general equilibrium model. For the economies examined, we find that seignorage tax is not a good one relative to a tax on labor income. If the after-tax real return is –5 percent, as it was in the 1974–1978 period, welfare is approximately 0.5 percent of consumption lower than it would be if the after-tax return were zero.
|Date of creation:||1991|
|Publication status:||Published in Quarterly Review (Vol 15, Num 3, Summer 1991, pp. 3-10)|
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