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Study On Seigniorage And Rmb Seigniorage

Posted on:2006-03-04Degree:MasterType:Thesis
Country:ChinaCandidate:G M TangFull Text:PDF
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1.The main content and viewpionts The thesis consists of four chapters: the concepts, econometricalmodel and economic effect & evidence analysis. Chapter 1 underlines the seigniorage and related basic concepts. Itconsists of four sectors. In sector 1, along the course of the developmentof finance, I define the concept of seigniorage in the period of metal mintand coinage, and point out the correlation &difference between theseigniorages of narrow sense and broad sense. In sector 2, I introduce thecorrelation&difference between inflation-tax and seigniorage, and analysethe numerical relation. In sector 3, on the basis of deep analysis of thecomncepts of seigniorage and the profit of seigniorage, I explore thedifferent adscription of seigniorage and the difference betweenseigniorage and common tax, and analyse the direct and indirect profit ofthe issuance of currency. In sector 4, I explain the concept of internationalseigniorage. Chapter 2 is about the models. The relative models aboutseigniorage are introduced. It consists of three sectors. Sector 1introduces the model of maximizing seigniorage. Ignoring economicdevelopment and monetary-deepening, and on the assumption of therational expectation, by means of the monetary demand function of Cagan,deduce that the maximium seigniorage government can get, and theequilibrium result is given. Then the rational expectation is introduced, Idiscuss the influence the unexpected inflation exerts on the maximizedseigniorage. Sector 2 introduces the approach for the governmentestimating the seigniorage in practice. In the economy ofnon-development and monetary-deepening, the seigniorage incomeequals the basic currency capacity multiples the nominal intrerest. If theeconomic development and monetary-deepening is considerd, theseigniorage rate equals the sum of the contribution rate, the velocity ofmonetary-deepening and the nominal intrerest rate. Chapter 3 analyses the economic effect and welfare effect ofseigniorage. It consists of four sectors. Sector 1 analyses the effect ofdomestic economy. Sequently, the currency expansion effect, financedeficit-reparation effect, income-increase effect and other effects areanalysed. Sector 2 uses the dollar as an example to analyse the cost andprofit of the international seigniorage of dollar. Then I draw theconclusion that in spite of the unadvantageous results as the loss of thedependence of domestic economy, large amount of foreign debts anddeficit in the balance of payments, and the potential risk of seignioragereverse, the economic profit is substantial that brought by the direct andindirect seigniorage.Sector 3 analyses the loss brought by the seigniorage.Sector 4 briefly explores the relation between seigniorage income and theasset of the central bank. Chapter 4 analyses the reality of the RMB seigniorage income. Itconsists of three sectors. Sector 1 reviews the profile of China'sseigniorage income over the 20 years. It is pointed out that the substantialseigniorage from the process of monetary-deepening is the main source ofthe central finance income, and has strangly supported China'seconomy construction as well as retained the financial deficit at arelatively low level. Sector 2 analyses the international seigniorage ofRMB. by the cost-profit analysis of the international seigniorage of RMB,it is pointed out that RMB has taken the esponsibility of stablizing Asia'sfinance and economy, and its tendency of internationalization isadvoidable. Sector 3 gives the policy proposal on the internationalizationof RMB. In views of the selection of the topic and the angle of reseach, thethesis has defined the seigniorage and related conceptions in detail, andanalyses the related aspects about seigniorage. On the background ofshort domestic reseach of seigniorage, by analysis of the basic concepts, ithas systematicly analysed the econometrical model and economic effectof seigniorage. The seigniorage is a complicated and professional problem. Limitedby the length of the thesis, the short time and my limited capability, onlythe...
Keywords/Search Tags:seigniorage, inflation-tax, international, seigniorage seigniorage profit, monetary-deepening
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