A political economy model of monetary policy: decentralized decision making and competition for seigniorage

Autor:	RONALD HILLBRECHT
Jazyk:	English<br />Portuguese
Rok vydání:	2022
Předmět:	New political economy monetary policy inflation taxation seigniorage Economics as a science HB71-74
Zdroj:	Brazilian Journal of Political Economy, Vol 19, Iss 4, Pp 705-717 (2022)
Druh dokumentu:	article
ISSN:	1809-4538 0101-3157
DOI:	10.1590/0101-31571999-1038
Popis:	ABSTRACT A political economy model is developed to provide a rationale of monetary policy in high inflation regimes, such as the Brazilian experience until the advent of the Plano Real. Decision making of monetary policy is assumed to be decentralized, where several decision-makers competitively determine the quantity of money. It is shown that equilibrium inflation is higher than under the alternative monetary regime where decision making is centralized at the Central Bank. An important additional feature of this political economy model is that it does not rely on time-inconsistency to generate high and sub-optimal inflation.
Databáze:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/8bf74461feca4a85a6418d95fe8964a3 Zobrazit plný text záznamu View record in DOAJ