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Seigniorage as a tax: a quantitative evaluation
Abstract: In this paper we analyze the efficacy of seignorage as a tax associated with various monetary arrangements in a computable general equilibrium model. For the economies examined, we find that seignorage tax is not a good one relative to a tax on labor income. If the after-tax real return is ?5 percent, as it was in the 1974?1978 period, welfare is approximately 0.5 percent of consumption lower than it would be if the after-tax return were zero.
Keywords: Fiscal policy; Taxation;
Status: Published in Quarterly Review (Vol 15, Num 3, Summer 1991, pp. 3-10)
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Bibliographic Information
Provider: Federal Reserve Bank of Minneapolis
Part of Series: Staff Report
Publication Date: 1991
Number: 132