Discussion Paper Details

Please find the details for DP1121 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Causality Implications of the Public-Finance Approach to Inflation and Seigniorage

Author(s): Behzad Diba and Philippe Martin

Publication Date: January 1995

Keyword(s): Granger Causality, Inflation, Public Finance and Seigniorage

Programme Area(s): International Macroeconomics

Abstract: Recent empirical tests of dynamic optimal seigniorage models focus on their `smoothing' and long-run implications. The models also imply that the optimal policies are forward looking; that is seigniorage revenues depend on expected future government expenditures. We report causality tests of forward-looking policies for Germany, France, Italy, the United Kingdom and the United States.

For full details and related downloads, please visit:

Bibliographic Reference

Diba, B and Martin, P. 1995. 'Causality Implications of the Public-Finance Approach to Inflation and Seigniorage'. London, Centre for Economic Policy Research.