Central Bank Seigniorage: Czech Republic *

Transcription

1 Cenral Bank Seigniorage: Czech Republic * Jacek Cukrowki ** The Economic Iniue, Academy of Science of he Czech Republic, Prague, Czech Republic Emil Savrev Czech Naional Bank, Prague, Czech Republic In hi paper he concep of oal gro eigniorage i ued o analyze ource and ue of cenral bank eigniorage revenue in he Czech Republic during he period A comprehenive framework for meauring oal gro eigniorage and i main componen i preened and eimae of eigniorage revenue (ource and ue) are compued and analyzed. The udy how ha he convenional concep of moneary eigniorage hould no be ued a an eimae of governmen gain from money creaion. Moreover, he analyi of he cope of budge defici financing hrough money prining in he conidered period in he Czech Republic preened in he paper how ha revenue from he creaion of money ha never been exenively ued a a ool for financing governmen expendiure. JEL claificaion: E58, F36, P51 Keyword: eigniorage, economie in raniion, Czech Naional Bank * Auhor graefully acknowledge financial uppor from he ACE PHARE Programme reearch gran (P R: "The Opimal Policy Choice and he Credibiliy of Moneary Policy in Eaern Europe"). ** Correponding auhor. The Economic Iniue, The Academy of Science of he Czech Republic, P.O.Box 882, Poliickych Veznu 7, Prague 1, Czech Republic, Jacek.Cukrowki@cerge.cuni.cz - 1 -

2 1. Inroducion The iniial age of reform in Cenral and Eaern European economie wa accompanied by a harp decline in economic aciviy, an increae in inflaion rae and ignifican fical problem. Large budge defici reuled from a big drop in he ax bae, aociaed wih a drop in real oupu which wa unmached by fical expendiure cu. In mo Cenral and Eaern European counrie large public ecor defici deermined moneary growh, inflaion rae and eigniorage revenue in he beginning of he raniion period. A number of auhor conider eigniorage revenue a an imporan ource of governmen finance (ee, e.g., Drazen, 1989; Bruni, Penai and Pora, 1989, Grilli, 1989, and Gro, 1993). Recen reearch how ha he eigniorage in everal Souhern European counrie a a hare of GDP varie beween 2 and 4 percen (Horrendorf, 1997). The imporance of eigniorage a a revenue inrumen in Cenral and Eaern European counrie ha been alo frequenly analyzed (ee, for example, Oblah and Valeninyi, 1994; Koulan, 1995; Hochreier, Rovelli and Winckler, 1996; Budina, 1997; and Cukrowki and Janecki, 1998). The reul indicae ha he experience in collecing eigniorage revenue differ acro counrie. Hochreier, Rovelli and Winckler (1996), for example, udy cenral bank eigniorage in five counrie: Romania, Hungary, Czech Republic, Auria and Germany. Their finding (bae on opporuniy co and inflaion ax definiion of eigniorage) 1 indicae ha cenral bank eigniorage in 1993 wa abou 30% of GDP in Romania (due o he high inflaion rae), and 4% of GDP in Hungary (due o he high raio of cenral bank ae o GDP in Hungary). Seigniorage in he Czech Republic wa around 1% of GDP (imilar o ha of Auria and Germany). Thi 1 See Secion

3 could ugge ha revenue from he creaion of money play very differen budgeary role in Eaern European counrie. However, a indicaed by Klein and Neumann (1990) and Neumann (1996), o properly compare eigniorage revenue in variou counrie one ha o ake ino accoun a number of counry-pecific feaure, requiring a more deailed analyi of he mechanim underlying he eigniorage revenue creaion proce. Thi paper focue excluively on Czech Naional Bank eigniorage revenue in he period Following Neumann (1996), we define eigniorage in he broade poible ene a he um of all revenue reuling from he monopoly power o iue money. Unlike exiing empirical udie we ake ino accoun he imporan fac ha eigniorage depend alo on legal, iniuional and operaional deail ha are relevan for he creaion of bae money in a counry (ee Klein and Neumann, 1990; and Neumann, 1996). Thi approach no only allow proper eimaion of he eigniorage revenue in ubequen year, bu alo how how he ize of eigniorage revenue hould be compued for he purpoe of iner-counry comparion. The paper i organized a follow. In he nex ecion we dicu ome iue relaed o he economic underanding of he erm eigniorage ; moreover, we preen alernaive definiion, and he concep of oal gro eigniorage and he ource of oal gro eigniorage. In he hird ecion we conider he ue of oal gro eigniorage. In he fourh ecion we how he meauremen framework, decribe he daa ource and preen empirical reul. In he fifh ecion we dicu he reul compued. Finally, he la ecion conain he main concluion

4 2. The Concep of Seigniorage The concep of eigniorage can be defined in a few differen way. In he claical heoreical lieraure (ee e.g., Drazen, 1985) hree baic definiion of eigniorage are ued. The fir define eigniorage a inflaion ax (πh, where π i he inflaion rae and h denoe real high-powered money). The econd define eigniorage a opporuniy co of holding money (ih, where i i nominal inere rae) he privae ecor lo of foregone inere revenue from holding non-inere bearing cah balance inead of earning ae. The hird and he mo general define eigniorage a oal revenue aociaed wih money creaion (µh+(r-n)a, where µ i he nominal growh rae of highpowered money; r-n i he difference beween he real rae of inere and he populaion growh rae; a i he real ock of inere earning governmen ae, a<h). I ha been hown (ee Drazen, 1985) ha he fir wo definiion are pecial cae of he la one. A wih mo concepual iue, here i no clear indicaion which definiion of eigniorage i he be. In he analyi which follow we adop he concep of gro eigniorage, propoed by Klein and Neumann, (1990) and Neumann (1996), which encompae all oher concep. 2 In paricular, we define oal gro eigniorage a he real gro reource flow o he governmen ecor aociaed wih bae money creaion (Neumann, 1996). Formally, we pecify oal gro eigniorage a P P F F M i A + i A G = + +, (1) p p where 2 See Neumann (1996) for a deailed explanaion of how he concep of oal gro eigniorage fi he definiion (3) preened above

5 M i moneary eigniorage defined a a change in bae money ock M deflaed by he general price level p: M = M = M m (2) p M (m denoe real balance); A P and A F denoe a privae ecor deb and foreign deb, repecively; i P and i F and for correponding nominal inere rae; G denoe revenue from cenral bank operaion. Moneary eigniorage M meaure he acual wealh ranfer which he privae ecor ha o make in order o receive bae money in he amoun of M from he cenral bank. The econd erm in expreion (1) decribe he flow of inere revenue on he ock of non-governmen deb ha he cenral bank bough in he pa in exchange for non-inere bearing bae money (he deb ervice on he cenral bank ock of governmen deb i no included here becaue i i merely an inide ranacion beween he governmen and he cenral bank). The hird erm in expreion (1) decribe eigniorage revenue from cenral bank operaion. 3. The Diribuion of Toal Seigniorage Mo empirical lieraure preen a proxy for acual eigniorage flow o he governmen baed on wo implici aumpion: (1) he governmen receive he eigniorage revenue regardle of he legal and iniuional regulaion governing he relaionhip beween he governmen and cenral bank; (2) he amoun of eigniorage revenue ranferred o he governmen doe no depend on he pecific way and mean in which he creaion of eigniorage i induced by he cenral bank. Thi i a implificaion which doe no ake ino accoun he co of money producion and he - 5 -

6 exience of he cenral bank in general. Noe ha he co of he cenral bank could be ignifican (e.g., Klein and Neumann (1990) how ha in he period , abou 16.9% of German moneary eigniorage wa ued o cover he Bundebank operaing co). A more precie analyi preened by Neumann (1996) how ha oal eigniorage i ued for covering he co of money producion and cenral bank operaion C, for ne invemen in non-governmen deb by he cenral bank NI, for replacemen invemen o make up for he exchange rae induced lo of ae (in erm of domeic currency) 3 RI, for budge finance G, and for he increae of he cenral bank capial (or i ranferred o he hird parie) O. Thu, where + C NI RI G O = + + +, (3) Coin CB C C =, (4) p C + C Coin denoe he co of coinage, and C CB and for he cenral bank co of prining noe and mainaining operaion; NI P + F = A A, (5) p A P and A F denoe privae ecor deb and foreign deb, repecively; RI F L e A = =, (6) p ep L denoe a book lo (defined a a poiive number), and e i an exchange rae; 3 In he cae of a fixed exchange rae regime, RI equal zero (ee Neumann,1996; for deail)

7 G = G A + (R G p i G A G ), (7) A G denoe governmen deb and R G appropriaed profi; O R O =, (8) p R O denoe profi ranferred o he hird parie or ued for capial accumulaion. Par of he eigniorage ranferred o he cenral governmen budge G (pecified by expreion (7)) i called fical eigniorage (ee Klein and Neumann, 1990; and Neumann, 1996). In general, here hould be wo addiional erm in he numeraor of he expreion (7): R Coin revenue from coinage (in he cae where he governmen ha righ o iue coin a in Germany, for example); and T B axe on cenral bank propery and income (when he cenral bank ha o pay axe on propery and income a, for inance, in Japan). In he cae of he Czech Republic he governmen receive fical eigniorage hrough wo channel: (1) ne borrowing from he cenral bank ( G A ), and (2) appropriaion of he cenral bank profi, ne of inere paymen on he cenral G G G bank ock of governmen deb ( R i A ). Thu, fical eigniorage i fully deermined by expreion (7). 4. Empirical Analyi The empirical analyi of ource and ue of eigniorage revenue preened in hi ecion i baed on daa from he cenral bank balance hee and i aemen of income and expendiure and profi diribuion (he main daa ource are he Annual - 7 -

8 Repor of Czech Naional Bank). 4 The ample period i All he daa are repored annually and denoed in he analyi which follow by ubcrip. The Appendix explain in deail how pecific enrie in he balance hee and income aemen are ued o obain he daa required o compue he componen of oal gro eigniorage and i ue. We begin wih he diribuion of he oal gro eigniorage. The oal eigniorage i he um of he following ource: = + +, (9) M I A where he moneary eigniorage M i compued a?m M = ; (10) p eigniorage revenue from he ock of inere-earning foreign and domeic privae ae I i deermined a I IR =, (11) p IE where IR and IE correpond o inere revenue and inere expendiure, repecively; and eigniorage revenue from cenral bank operaion A i compued a A RE =, (12) p IR where RE denoe he oal revenue of he cenral bank. The oal eigniorage i allocaed o he following ue: = , (13) C NI RI G O 4 The form of he balance hee of Czech Naional Bank and i aemen of income and expendiure and profi diribuion are preened in Appendix

9 where C C = + p Co& Bn C CB, (14) C CB - co of mainaining operaion of cenral bank, C Co&Bn - co of coinage and prining banknoe, G G G G G?A + (R i A ) =, (15) p RI L p F = =?e 1, (16) A e p 1 O G G G? (R i A ) =, (17) p where Π denoe he oal profi of he cenral bank in he period conidered. Invemen eigniorage can be compued a a reidual, i.e., NI C RI G O = ( ). (18) The daa required for he compuaion of all ource and ue of oal gro eigniorage in he period are preened in Table A.3. In Table 1, he ource and ue of eigniorage for he overall ample period are preened in Czech Crown. All flow are expreed in 1993 price. The year by year developmen of he oal gro eigniorage and i ource a a fracion of GDP are preened in Figure 1. The diribuion of he oal gro eigniorage in ubequen year a a fracion of GDP i preened in Figure

10 Table 1. Source and Ue of Seigniorage in he Czech Republic (1993 price) Toal Source Moneary Inere Revenue Revenue from CB operaion Ue Co Ne Invemen Replacemen Fical Source Moneary Inere Revenue Revenue from CB operaion Ue Co Ne Invemen Replacemen Fical T M I A C NI RI F M I A C NI RI F Billion of Czech Crown 22,82 49,92 47,14 44,84 28,90 16,70 40,12 35,53 45,76-4,33 7,90 7,92 7,06 2,82 4,84-1,79 1,87 4,55-3,74 28,39 2,57 1,95 1,66 2,17 5,72 79,45 58,70 43,65 18,26-0,08-2,23 3,07-1,42-31,41-10,99-4,05 6,33 Percen of oal 73,2% 80,4% 75,4% 102,1% -15,0% 34,6% 15,9% 15,0% 6,3% 16,7% -7,8% 3,8% 9,7% -8,3% 98,2% 11,3% 3,9% 3,5% 4,9% 19,8% 159,2% 124,5% 97,3% 63,2% -0,2% -4,7% 6,8% -4,9% -62,9% -23,3% -9,0% 21,9%

11 % % Moneary eigniorage Inere eigniorage Toal eigniorage Seigniorage revenue from cenral bank % % % % % % Year Figure 1. Toal gro eigniorage and i ource in he period (a a percenage of GDP)

12 0,00% 8,00% Fical eigniorage Toal eigniorage Invemen eigniorage Co eigniorage 6,00% 4,00% 2,00% 0,00% ,00% 4,00% Year Figure.2. Toal gro eigniorage and i ue in he period (a a percenage of GDP)

13 A comparion of he convenional concep of moneary eigniorage wih oal gro eigniorage and fical eigniorage how ha moneary eigniorage uually underae oal gain from money creaion. Moreover, in general, i doe no reflec he cope of budge defici financing hrough eigniorage revenue. Furhermore, conrary o he common view ha in mo of Eaern and Cenral European counrie, revenue from money creaion play a ignifican budgeary role, he figure how ha in he Czech Republic, revenue from he creaion of money have never been exenively ued a a ool for financing governmen expendiure. 5. Macroeconomic noe In he beginning of he nineie, Czecholovakia and laer he Czech Republic implemened a ucceful macroeconomic program. The auhoriie managed o keep inflaion relaively low (immediaely afer he ranformaion oward a marke economy, in 1991, Czecholovakia experienced around 57 percen inflaion, which wa reduced o 20 percen in 1993 and kep down below 10 percen in he year hereafer). Budge defici in he period did no exceed 1% (acually ill 1995 he governmen budge wa in urplu in 1993 he budge urplu wa abou 0.1%, in 1994 abou 0.9% and in 1995 abou 0.5%; for 1996 and 1997, he budge defici wa 0.1% and 1% percen repecively) o here wa no grea preure o ue eigniorage revenue for fical purpoe. Moreover, in he conidered period he governmen had ignifican revenue from privaizaion. A he reul, a hown in Figure 2, in he year eigniorage wa no ued for governmen purpoe (reource flowed from he governmen o he cenral bank). In hi period mo of he eigniorage revenue ware ued for he invemen in non-governmen deb. Noe, however, ha he value of he

14 invemen in non-governmen deb ha been coninuouly decreaing aring from 7.7% of GDP in 1994 o 1.7% in In 1997, a he reul of economic diurbance, a change in he previouly oberved paern of fical eigniorage developmen occured (hi change i in line wih he developmen of he budge defici of he Czech Republic) 5. We hould noe, however, ha in 1997 fical eigniorage wa ill much below 1% of GDP. I i worh menioning ha an increae in fical eigniorage ha been accompanied by a ignifican decreae in he moneary bae (rong moneary rericion have been impoed in repone o he high curren accoun defici) 6 wih a relaively mall decline in he oal gro eigniorage. Thi how explicily ha a decreae in he moneary bae doe no auomaically imply maller eigniorage revenue for budge defici financing. The increae in he cope of he budge defici financing accompanied by a decreae in moneary bae can be explained by he aciviie of he Czech Naional Bank during he period of exchange marke diurbance and he change of he exchange rae regime (he fir par of 1997). For 1997, Figure 1 and 2 how huge revenue from cenral bank operaion and more or le he ame level of he cenral bank operaion co a in he previou year. Thi ugge ha in 1997 he CNB accumulaed foreign ae before devaluaion and old hem ju afer devaluaion wih a big profi (he ne invemen in non-governmen ae wa ill poiive bu raher mode). A large profi from financial operaion allowed he CNB o reduce he moneary bae and a he ame ime o increae he flow of reource o he budge, i.e., fical eigniorage (ee Figure 2). defici. 5 In 1997 he balanced oberved in previou year budge wa replaced by relaively high budge 6 Curren accoun defici in 1997 wa abou 7.9%

15 To ummarize he analyi above, one can ay ha an increae in he cope of budge defici financing can be achieved no only by an increae in he moneary bae (a i i uggeed by he radiional approach o eigniorage) which could raie inflaion, bu alo by increaing cenral bank efficiency. 6. Concluding Remark Thi paper ha preened and applied new inigh from eigniorage lieraure o he problem of financing he budge defici in he Czech Republic hrough eigniorage revenue. In paricular, conrary o oher empirical udie, we have no relied on he imple concep of moneary eigniorage which meaure he flow of he addiional moneary bae he governmen can iue, bu inead we have ued (1) a new concep of oal gro eigniorage which meaure he oal flow o he governmen ecor and (2) fical eigniorage which meaure he porion of eigniorage received for budge financing. Our empirical analyi of ource of eigniorage revenue in he Czech Republic for he period ha revealed ha he moneary auhoriie inere earning on non-governmen deb (inere revenue) and revenue from he cenral bank operaion are imporan componen of oal eigniorage revenue, and herefore, he convenional concep of moneary eigniorage doe no alway adequaely meaure he oal flow of eigniorage. In paricular, he reul how ha an eimaion of he oal eigniorage by moneary eigniorage uually underae he oal flow of eigniorage revenue. A he ame ime, he reul indicae ha moneary eigniorage hould no be ued a a proxy for he oal flow o he governmen ecor ince i reflec fical eigniorage only if invemen eigniorage i cloe o zero, omehing ha i uually no he cae in raniion economie

16 Moreover, in conra o he common belief ha in mo raniion economie revenue from money creaion play a ignifican budgeary role, we found ha in he Czech Republic revenue from he creaion of money have never been exenively ued a a ool for financing governmen expendiure. The average flow of eigniorage revenue ino he budge i of a imilar cope a i uually he cae in developed Weern European counrie. Finally, i i imporan o re ha he reul preened in hi paper imply a weakening of he link beween inflaion and eigniorage. In paricular, much like Klein and Neumann (1990), we would like o emphaize ha he increae in a moneary bae (and a counry inflaion rae) doe no auomaically imply higher fical eigniorage revenue. Nor doe he invere necearily hold, i.e., a decreae in a moneary bae (aociaed wih a decreae in he rae of inflaion) doe no auomaically imply maller eigniorage revenue for budge defici financing. An increae in he cope of budge defici financing can be achieved by increaing he cenral bank efficiency inead of by raiing he rae of inflaion. 7 However, an analyi of he efficiency of he legal arrangemen and operaional procedure of he Czech Naional Bank ha been lef for furher reearch. 7 Klein and Neumann (1994) how ha a cenral bank wih a ufficien exen of operaional independence migh be able o influence he amoun of eigniorage acquired by he governmen even a unchanged rae of money growh

17 Appendix. Daa Source The main ource of daa ued for he calculaion of he oal gro eigniorage and i componen are: (1) he Balance Shee of he Czech Naional Bank and (2) he Profi and Lo Saemen of he Czech Naional Bank. The implified form of hee wo documen (for 1997) are preened in Table A1 and Table A2 below. A hor decripion follow of how Table A3 (conaining all he daa ued for he compuaion of he oal gro eigniorage and i componen) i conruced. Table A1. Balance Shee of he Czech Naional Bank a of December 1997 (in billion of Czech Crown) Ae Liabiliie A.1 Inernaional Reerve L.1 Moneary Bae A.1.1 Gold L.1.1 Currency in circulaion A.1.2 IMF Quoa L.1.2 Bank Depoi A.1.3 Depoi a Foreign Moneary Iniuion L.2 Foreign Depoi A.2 Loan L.3 Depoi of Cuomer A.2.1 Loan abroad * L.4 Governmen Depoi A.2.2 Loan o Domeic L.5 CNB bond Moneary Iniuion A.2.3 Loan o Cuomer L.6 Capial 1.40 A.3 Securiie L.7 Oher Liabiliie A.4 Oher Ae L.8 Ne Income, Toal Toal * Loan abroad include financial paper in foreign currency and depoi in foreign currency

18 Table A2. Profi and Lo Saemen of he Czech Naional Bank a of December 1997 (in billion of Czech Crown) Revenue Expendiure R.1 Inere Revenue E.1 Inere Expendiure R.2 Profi from Financial Operaion * E.2 Mainaining operaion, prining banknoe and making coin ** R.3 Revenue from fee and axe E.2.1 Expendiure for prining money and mining coin E.2.2 Mainaining operaion E.3 Creaing Reerve for Depoi *** R.4 Profi for he Accouning Period E.4 Creaing Oher Reerve * Profi from rading all kind of financial paper (reaury bill, bond ec.). ** Mainaining operaion, prining banknoe and making coin include: expendiure on employee, wage and alarie, ocial and medical inurance, prining banknoe and making coin, expendiure from propery ranfer, non-receivable loan from clien, and oher mainenance expendiure. *** Creaing Reerve for Depoi include: legal reerve and inurance for claified loan, reerve for financial paper (a decribed above), reerve for angible and non-angible propery, reerve for loan, reerve for given inurance, oher reerve. Table imilar o Table A1 and Table A2 for he period were ued o obain he daa preened in Table A

19 Table A3. Daa ued for he compuaion of he oal gro eigniorage and i main componen (nominal value) Year P C Co&BN C CB G R G -i G A G A G A F IR-IE e DM , , , , , , , , ,12 where P he general price level (repored annually by he Czech Saiical Office); C Co&BN co incurred by he Czech Naional Bank for prining bank noe and mining coin, C Coin +C BN (in billion of Czech Crown); C CB co for mainaining operaion (in billion of Czech Crown); G revenue from cenral bank operaion (in billion of Czech Crown), R G -i G A G ne profi diribued o he governmen (in billion of Czech Crown); A G governmen deb (in billion of Czech Crown), A F foreign deb held by he Czech Naional Bank, repecively (in billion of Czech Crown); IR-IE ne inere revenue of he Czech Naional Bank (in billion of Czech Crown); e he exchange rae of he Czech currency wih repec o he German Mark, (expreed a uni of Czech Crown per one German Mark). M change in he moneary bae (in billion of Czech Crown). Source: C Co&BN (co of prining banknoe and making coin) i preened in he Profi and Lo Saemen of he Czech Naional Bank (ee Table A2, iem E2.1). C CB (co of mainaining operaion) i preened in he Profi and Lo Saemen of he Czech Naional Bank (ee Table A2, iem E2.2)

20 G (revenue from he cenral bank operaion) preened in he Profi and Lo Saemen of he Czech Naional Bank (ee Table A2, iem R2+R3). R G -i G A G (ne profi diribued from he cenral bank o he governmen) i repored in he Profi and Lo Saemen of he Czech Naional Bank (ee Table A2, iem R4). A G (governmen deb held by he Czech Naional Bank) i deermined bae on inernal daa of he Czech Naional Bank (negaive value, and negaive change, reflecing large governmen income from privaizaion). A F (foreign deb held by he Czech Naional Bank) i deermined a he difference beween Inernaional Reerve (Table A1, iem A.1.2+A.1.3+A.2.1) and Foreign Depoi (Table A1, iem L.2). IR-IE (ne inere revenue of he Czech Naional Bank) deermined a he difference beween Inere Revenue (Table A2, iem R.1) and Inere Expendiure (Table A2, iem E.1). e (he exchange rae of he Czech currency wih repec o he German Mark) i repored by he Czech Naional Bank. M (change in he moneary bae) repored by he Czech Naional Bank

21 Reference Budina, N. (1997) Eay on Coniency of Fical and Moneary Policy in Eaern Europe. Tinbergen Iniue Reearch Serie 145, Univeriy of Amerdam. Bruni, F., Penai, A. and Pora, A. (1989) Financial regulaion, implici axe, and fical adjumen in Ialy. In M.Moni (ed.), Fical Policy, Economic Adjumen, and Financial Marke, IMF Publicaion Service, Wahingon, D.C. Cukrowki, J. and Janecki, J. (1998) Financing Budge Defici by Seigniorage: he Cae of Poland Sudie and Analye No. 155, Cener for Social and Economic Analye (CASE), Waraw 1998, pp. 30. Drazen, A. (1985) A general meaure of inflaion ax revenue. Economic Leer, 17, Drazen, A. (1989) Capial conrol and eignorage in an open economy. In M. de Cecco and A. Giovannini (ed.), A European Cenral Bank? Perpecive on Moneary Unificaion Afer Ten Year of he EMS, Cambridge Univeriy Pre, Cambridge. Hochreiner, E., Rovelli, R. and Winckler, G. (1996) Cenral bank and eigniorage: a udy of hree economie in raniion. European Economic Review (Paper and Proceeding), 40, Grilli, V. (1989) Seignorage in Europe. In M. de Cecco and A. Giovannini (ed.), A European Cenral Bank? Perpecive on Moneary Unificaion Afer Ten Year of he EMS, Cambridge Univeriy Pre, Cambridge. Gro, D. (1993) Seignorage and EMU. European Journal of Poliical Economy, 9, Horrendorf, B. (1997) Time conien collecion of opimal eignorage: a unifying framework. Journal of Economic Survey, 11:1,

22 Klein, M. and Neumann, M.J.M. (1990) Seignorage: wha i i and who ge i? Welwirchafliche Archiv, 126, Koulan, A. (1995) Razebné a fikální razebné: problémy merení. Ceká Národní Banka, Iniu Ekonomie 44, Praha. Neumann M.J.M. (1996) A Comparaive Sudy of Seignorage: Japan and Germany. Bank of Japan Moneary and Economic Sudie, 14:1, Oblah, G. and Valeninyi, A. (1994) Seignorage and Inflaion ax: ome heory and an applicaion o Hungary. Working paper, KOPINT-DATORG, Budape