The generation and distribution of central bank seigniorage in the Czech Republic, Hungary and Poland

We measure the amount of central bank seigniorage generated in three economies in transition and inquire to what extent seigniorage ultimately accrues to the government. We relate our findings to the institutional environment of the three countries. We find that, in parallel to the process of disinf...

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Bibliographic Details
Published inPSL quarterly review Vol. 55; no. 223
Main Authors Eduard Hochreiter, Riccardo Rovelli
Format Journal Article
LanguageEnglish
Published Associazione Economia civile 01.04.2012
Subjects
Disinflation
Monetary
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Summary:We measure the amount of central bank seigniorage generated in three economies in transition and inquire to what extent seigniorage ultimately accrues to the government. We relate our findings to the institutional environment of the three countries. We find that, in parallel to the process of disinflation, seigniorage has declined substantially in the 1990s in all three countries under consideration pointing to more monetary discipline and a strengthening of central bank independence. Only in Hungary seigniorage benefited the government to a significant amount. We interpret this as being the consequence of past policies, rather than an obstacle to further disinflation.   JEL Codes: E58, P24, E31, E52, P21, P34, P35
ISSN:2037-3635
2037-3643
DOI:10.13133/2037-3643/9916