"Historically, countries have relied on seigniorage. In this paper, we explore a set of features in which a benevolent government will rely on seigniorage. We use a simple overlapping generations model with return-dominated money. Money is valued because of a reserve requirement. The government...

"In this paper, we consider a government that executes a permanent open market sale. The government is forced to eventually use money creation to pay for the debt's expenses, choosing between changing either the money growth rate (the inflation-tax rate) or the reserve requirement ratio (the...

The money stock, in almost every country in the world, does not contract. This paper attempts a welfare-based explanation for this observation. We study an overlapping generations model with return dominated money. A reserve requirement forces agents to hold money. There is a government that has...

Does it matter in a revenue-neutral setting if the government changes the inflation tax base or the inflation tax rate? We answer this question using an overlapping generations model in which bonds, capital, and cash reserves coexist, and the government uses seigniorage to service its debt,...

Does it matter in a revenue-neutral setting if the government changes the inflation tax base or the inflation tax rate? We answer this question using an overlapping generations model in which bonds, capital, and cash reserves coexist, and the government uses seigniorage to service its debt,...