Optimal Seigniorage and Financial Liberalization

Détails

ID Serval
serval:BIB_65CBAE99A868
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Titre
Optimal Seigniorage and Financial Liberalization
Périodique
Journal of International Money and Finance
Auteur⸱e⸱s
Bacchetta P., Caminal R.
ISSN
0261-5606
Statut éditorial
Publié
Date de publication
12/1992
Peer-reviewed
Oui
Volume
11
Numéro
6
Pages
518-538
Langue
anglais
Résumé
This paper analyzes the effect of financial integration for countries relying on the taxation of their domestic financial system. A two-country model with overlapping generations and explicit financial intermediation is used. Governments derive revenues from seigniorage and set optimally, but non-cooperatively, the rate of inflation and the level of required reserves on bank deposits. A financial liberalization leads to lower reserve ratios, higher inflation rates, and larger stocks of government debt. When the liberalization is anticipated, governments may temporarily increase the reserve ratios before the liberalization occurs
Mots-clé
Reserve requirements, Optimal taxation, Money, Tax
Web of science
Création de la notice
30/03/2009 14:11
Dernière modification de la notice
20/08/2019 15:21
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