NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Seigniorage in Europe

Vittorio U. Grilli

NBER Working Paper No. 2778
Issued in November 1988
NBER Program(s):   ITI   IFM

In this paper, based on the experience of ten European countries, we study the relevance of seigniorage revenues in the recent past, and we speculate about their importance in the near future. We find that the members of the European community differ widely in the way they manage monetary policies. While for some of the European countries we could not identify any consistent seigniorage policy, for others seigniorage appears to have been an important component of their financing policies. This lack of consensus about the role of monetary policies is a potential source of conflict in designing common exchange rate policies. A formal analysis of the current status of the finances of the governments of the ten European countries also revealed that several of them are now following budget policies that are potentially incompatible with their long run solvency. This also represents a major obstacle toward monetary unification on exchange rate stability. Member countries will be faced with quite different needs for revenues and eliminating a (politically) flexible instrument like siegniorage may result in an unstable situation.

download in pdf format
   (300 K)

download in djvu format
   (182 K)

email paper

This paper is available as PDF (300 K) or DjVu (182 K) (Download viewer) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w2778

Published: From A European Central Bank? edited by Marcell de Cecco and Alberto Giovannini. New York: Cambridge University Press, 1989.

Users who downloaded this paper also downloaded these:
Cukierman, Edwards, and Tabellini w3199 Seigniorage and Political Instability
Buiter w12919 Seigniorage
Obstfeld w2869 Dynamic Seigniorage Theory: An Exploration
Mankiw w2270 The Optimal Collection of Seigniorage: Theory and Evidence
Sinn and Feist w6072 Eurowinners and Eurolosers: The Distribution of Seigniorage Wealth in EMU
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us