The Optimal Collection of Seigniorage: Theory and Evidence / N. Gregory Mankiw.

Format:

Book

Author/Creator:

Mankiw, N. Gregory.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w2270.

NBER working paper series no. w2270

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

The Optimal Collection of Seigniorage

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1987.

Summary:

This paper presents and tests a positive theory of monetary and fiscal policy. The government chooses the rates of taxation and inflation to minimize the present value of the social cost of raising revenue given exogenous expenditure and an intertemporal budget constraint. The theory implies that nominal interest rates and inflation are random walks. It also implies that nominal interest rates and inflation move together with tax rates. United States data from 1952 to 1985 provide some support for the theory.

Notes:

Print version record

May 1987.