Kim, Iljoong; Kim, Inbae - In: Hitotsubashi Journal of Economics 52 (2011) 2, pp. 143-163
Academic attention to the central bank's retained profits has been scarce, although their magnitudes are nontrivial. This paper confirms that the profits retained as a reserve fund, if combined with unconstrained bureaucratic discretion, can engender inflationary bias. This result is intriguing...