This article examines the implications for seigniorage revenue of exchange rate and asset market liberalisation. It is argued that liberalisation lowers the average and marginal seigniorage capacity of governments by increasing the elasticity of substitution between base money and other financial assets. Moreover, to the extent that exchange rate liberalisation eliminates goods market rationing, it simultaneously reduces the return to holding precautionary and speculative money balances. The ...Expand abstract
- Journal of Development Studies
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Liberalisation and Seigniorage Revenue in Kenya, Ghana and Tanzania.
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