IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpma/0503010.html
   My bibliography  Save this paper

Active And Passive Seigniorage Revenues: The Case For Turkey 1970-1997

Author

Listed:
  • Ferda Halicioglu

    (The University of Greenwich, London)

Abstract

This study is concerned with the components of the total seigniorage revenues that have been collected by the Turkish governments during the years 1970-1997. Traditionally, a government can increase the monetary base in order to finance its expenditures partially. This form of monetary finance is related to active seigniorage revenues. On the other hand, as real economic growth takes place, a government can also benefit from this process as a result of an increase in demand for the real money balances which is termed as passive seignoirage revenues. This paper presents empirically that Turkish governments have benefited from both types of seignoirage revenues in order to finance its budget deficits during the years 1970-1997 but this policy seems to lose its effectiveness in the recent years due to the financial liberalization.

Suggested Citation

  • Ferda Halicioglu, 2005. "Active And Passive Seigniorage Revenues: The Case For Turkey 1970-1997," Macroeconomics 0503010, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:0503010
    Note: Type of Document - pdf
    as

    Download full text from publisher

    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/mac/papers/0503/0503010.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Spaventa, Luigi, 1989. "Seigniorage: Old and new policy issues Introduction," European Economic Review, Elsevier, vol. 33(2-3), pages 557-563, March.
    2. Fischer, Stanley, 1982. "Seigniorage and the Case for a National Money," Journal of Political Economy, University of Chicago Press, vol. 90(2), pages 295-313, April.
    3. Auernheimer, Leonardo, 1974. "The Honest Government's Guide to the Revenue from the Creation of Money," Journal of Political Economy, University of Chicago Press, vol. 82(3), pages 598-606, May/June.
    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. Barro, Robert J, 1972. "Inflationary Finance and the Welfare Cost of Inflation," Journal of Political Economy, University of Chicago Press, vol. 80(5), pages 978-1001, Sept.-Oct.
    6. Brennan, Geoffrey & Buchanan, James, 1981. "Revenue Implications of Money Creation under Leviathan," American Economic Review, American Economic Association, vol. 71(2), pages 347-351, May.
    7. Mankiw, N. Gregory, 1987. "The optimal collection of seigniorage : Theory and evidence," Journal of Monetary Economics, Elsevier, vol. 20(2), pages 327-341, September.
    8. Marty, Alvin L, 1973. "Growth, Satiety, and the Tax Revenue from Money Creation," Journal of Political Economy, University of Chicago Press, vol. 81(5), pages 1136-1152, Sept.-Oct.
    9. Nichols, Donald A, 1974. "Some Principles of Inflationary Finance," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 423-430, Part I, M.
    10. Friedman, Milton, 1971. "Government Revenue from Inflation," Journal of Political Economy, University of Chicago Press, vol. 79(4), pages 846-856, July-Aug..
    11. Michael Bruno & Stanley Fischer, 1990. "Seigniorage, Operating Rules, and the High Inflation Trap," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(2), pages 353-374.
    12. Siegel, Jeremy J, 1981. "Inflation, Bank Profits, and Government Seigniorage," American Economic Review, American Economic Association, vol. 71(2), pages 352-355, May.
    13. Cukierman, Alex & Edwards, Sebastian & Tabellini, Guido, 1992. "Seigniorage and Political Instability," American Economic Review, American Economic Association, vol. 82(3), pages 537-555, June.
    Full references (including those not matched with items on IDEAS)

    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. Patrick Honohan, 1994. "The Fiscal Approach to Financial Intermediation Policy," Papers WP049, Economic and Social Research Institute (ESRI).
    2. 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.
    3. Akhand Akhtar Hossain, 2009. "Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 12777.
    4. Tahsin SAADI SEDIK, 2003. "Optimal Seigniorage in Developing Countries: An Empirical Investigation," Working Papers 200307, CERDI.
    5. 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.
    6. Grossman, Herschel I. & Van Huyck, John B., 1986. "Seigniorage, inflation, and reputation," Journal of Monetary Economics, Elsevier, vol. 18(1), pages 21-31, July.
    7. 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.
    8. Thomas Jordan, 2001. "Monetary control uncertainty and inflation bias," Journal of Economics, Springer, vol. 73(2), pages 125-147, June.
    9. T. Norman Van Cott & Gary J. Santoni, 1976. "Consumption-Based Private To Public Redistribution During Inflation," Public Finance Review, , vol. 4(4), pages 453-464, October.
    10. Battilossi, Stefano, 2003. "Capital mobility and financial repression in Italy, 1960-1990 : a public finance perspective," IFCS - Working Papers in Economic History.WH wh030602, Universidad Carlos III de Madrid. Instituto Figuerola.
    11. Roubini, Nouriel & Sala-i-Martin, Xavier, 1995. "A growth model of inflation, tax evasion, and financial repression," Journal of Monetary Economics, Elsevier, vol. 35(2), pages 275-301, April.
    12. Medhora, Rohinton, 1995. "The allocation of seigniorage in the Franc Zone: The BEAC and BCEAO regions compared," World Development, Elsevier, vol. 23(10), pages 1781-1793, October.
    13. Philipp F. M. Baumann & Enzo Rossi & Alexander Volkmann, 2020. "What Drives Inflation and How: Evidence from Additive Mixed Models Selected by cAIC," Papers 2006.06274, arXiv.org, revised Aug 2022.
    14. Gaowang Wang & Heng-fu Zou, 2011. "Inflation Aversion and the Optimal Inflation Tax," Annals of Economics and Finance, Society for AEF, vol. 12(1), pages 13-30, May.
    15. Arby, Muhammad Farooq, 2006. "Seigniorage Earnings of Commercial Banks and State Bank of Pakistan," MPRA Paper 4955, University Library of Munich, Germany.
    16. 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.
    17. Miller, Stephen Matteo & Ndhlela, Thandinkosi, 2020. "Money demand and seignorage maximization before the end of the Zimbabwean dollar," Journal of Macroeconomics, Elsevier, vol. 63(C).
    18. 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.
    19. Alexandru Minea & Patrick Villieu, 2006. "Long-Run Monetary and Fiscal Policy Trade-Off in an Endogenous Growth Model with Transaction Costs," Post-Print halshs-00261119, HAL.
    20. 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.

    More about this item

    Keywords

    Seigniorage; Monetary; Policies; Budget Deficits; Turkey;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:wpa:wuwpma:0503010. 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: EconWPA (email available below). General contact details of provider: https://econwpa.ub.uni-muenchen.de .

    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.