The paper studies the solvency of the Indian public sector and the eventual monetization and inflation implied by … primary surplus plus seigniorage to GNP. Our estimates of the base money demand function suggest that even maximal use of … seigniorage will not be sufficient to restore solvency. …

Recent empirical tests of dynamic optimal seigniorage models focus on their `smoothing' and long-run implications. The … models also imply that the optimal policies are forward looking; that is seigniorage revenues depend on expected future …

in public consumption spending will lower the inflation rate in the revenue-efficient region of the seigniorage Laffer … curve. When there are cuts in public sector capital formation, the inflation rate can rise even in the seigniorage …The paper uses a 'demand for seigniorage revenue' and 'supply of seigniorage revenue' approach to determine the …

steady-state increase in seigniorage revenue. In fact, the inflation rate slightly exceeds the seigniorage-maximizing rate …

the interests of the poor. The clientele of such governments favour unanticipated inflation taxes to erode the real value … of debt service and redistribute income from the rich to the poor. Consequently, inequality sows the seeds for inflation …. Regressions confirm the empirical predictions of the model and show a strong positive relationship between the inflation rate and …

inflation, because each bank fails to internalize the externalities associated with appropriating too much seigniorage from the …This paper discuss the merits of an independent "EuroFed" within the context of a tax/seigniorage smoothing model for a … monetary union. There is an incentive to use a surprise inflation tax to wipe out the real value of government debt and wage …

The fiscal gains from, and hence the political incentives for, an increase in the inflation rate of ten percentage … inflation increase would have been even larger, however, and would thus have reduced net welfare. Possible institutional reforms …, aimed at making the political costs of inflation more equal to the social costs, are presented and discussed. …

, the theory provides a rationale for the commonly observed relationship between inflation and its variability. …The thesis of this paper is that political differences between parties are a major explanation of inflation and … 'inflationary default', i.e., with the level of public debt. The paper tests a number of predictions of this theory. First, that …

From 1970 to 1985, Israel experienced high inflation. It rose in three jumps to new plateaus and eventually exceeded … of fallen bank shares caused the last big jump in inflation that occurred in October 1983. Bank shares had just collapsed …. Because that was foreseen, inflation immediately rose as predicted by the unpleasant monetarist arithmetic of Sargent and …