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Can the Central Bank Alleviate Fiscal Burdens?

Reis, Ricardo - 2017

Central banks affect the resources available to fiscal authorities through the impact of their policies on the public debt, as well as through their income, their mix of assets, their liabilities, and their own solvency. This paper inspects the ability of the central bank to alleviate the fiscal...

Persistent link: https://www.econbiz.de/10012966585

Seigniorage and Fixed Exchange Rates : An Optimal Inflation Tax Analysis

Fischer, Stanley - 2021

determination of the revenue received from seigniorage. If the country goes further and uses a foreign money, it loses all … seigniorage. This paper uses an optimal inflation tax approach to analyze the consequences for optimal rates of income taxation … and welfare of the alternative exchange rate and monetary arrangements. From the viewpoint of seigniorage, a system in …

Persistent link: https://www.econbiz.de/10013215367

What If Alexander Hamilton Had Been Argentinean? a Comparison of the Early Monetary Experiences of Argentina and the United States

Bordo, Michael D.; Végh, Carlos A. - 2021

The contrast between the early nineteenth century Argentinean experience of high inflation and the American experience of low inflation is interpreted in terms of a dynamic monetary model of optimal taxation. It is argued that the two countries' experiences diverged because of the different...

Persistent link: https://www.econbiz.de/10013235603

Inflating Away the Public Debt? An Empirical Assessment

Hilscher, Jens - 2014

We propose and implement a method that provides quantitative estimates of the extent to which higher- than-expected inflation can lower the real value of outstanding government debt. Looking forward, we derive a formula for the debt burden that relies on detailed information about debt maturity...

Persistent link: https://www.econbiz.de/10013050141

Escaping the Great Recession

Bianchi, Francesco - 2014

We show that policy uncertainty about how the rising public debt will be stabilized accounts for the lack of deflation in the US economy at the zero lower bound. We first estimate a Markov-switching VAR to highlight that a zero-lower-bound regime captures most of the comovements during the Great...

Persistent link: https://www.econbiz.de/10013052104

Sovereign Debt Portfolios, Bond Risks, and the Credibility of Monetary Policy

Du, Wenxin - 2016

We document that governments whose local currency debt provides them with greater hedging benefits actually borrow more in foreign currency. We introduce two features into a government's debt portfolio choice problem to explain this finding: risk-averse lenders and lack of monetary policy...

Persistent link: https://www.econbiz.de/10012983672

Transition Issues for the European Monetary Union

Buiter, Willem H.; Sibert, Anne C. - 2021

coordination problems associated with the distribution of seigniorage revenue and the Stability and Growth Pact …

Persistent link: https://www.econbiz.de/10013240625

Dynamic Seigniorage Theory : an Exploration

Obstfeld, Maurice - 2008

This paper shows that the optimal extraction of seigniorage implies a strong tendency for inflation to fall over time …

Persistent link: https://www.econbiz.de/10012774830

Self-Fulfilling Debt Crises : Can Monetary Policy Really Help?

Bacchetta, Philippe - 2015

the outstanding debt and the cost of new borrowing, and increase tax revenues and seigniorage. Unconventional policies …

Persistent link: https://www.econbiz.de/10013022918

On the Desirability of Fiscal Constraints in a Monetary Union

Chari, Varadarajan V.; Kehoe, Patrick J. - 2021

The desirability of fiscal constraints in monetary unions depends critically on whether the monetary authority can commit to follow its policies. If it can commit, then debt constraints can only impose costs. If it cannot commit, then fiscal policy has a free-rider problem, and debt constraints...

Persistent link: https://www.econbiz.de/10013223181