GOVERNMENT REVENUE FROM MONEY CREATION WITH GOVERNMENT AND PRIVATE MONEY Academic Article

abstract

• For a stationary state, we show that if the government is as efficient as a competitive banking industry in producing money, then the substitution of private for government money does not alter the revenue from money creation or the present value maximizing holding cost of money. If households and non-banking firms hold both government and private money, then maximum present value requires that the reserve ratio maximize the monetary base and that the base nominal interest elasticity equal minus one. With perfect foresight, zero money balances and zero revenue from money creation is the only time consistent revenue maximizing solution. 1986.

authors

• Saving, Thomas

published proceedings

• JOURNAL OF MONETARY ECONOMICS

altmetric score

• 3

author list (cited authors)

• DWYER, G. P., & SAVING, T. R.

citation count

• 9

complete list of authors

• DWYER, GP||SAVING, TR

publication date

• January 1986

publisher

• Elsevier  Publisher

published in

• Journal of Monetary Economics  Journal

Digital Object Identifier (DOI)

• 10.1016/0304-3932(86)90030-9

start page

• 239

end page

• 249

volume

• 17

issue

• 2

URL

• http://dx.doi.org/10.1016/0304-3932(86)90030-9