Seigniorage in Romania

Seigniorage denominates the capacity of (state) authorities to finance expenditures by money printing. The level of seigniorage influences the level of inflation. The paper calculates the seigniorage level for Romania during 1991-1994 and compares it with that of other countries (Austria, Germany and Hungary).

The motivation for this paper was the fact that although some Eastern-European Countries would like to become EU members, it was not known to what extent the practice of the National Banks is according to the Maastricht-Treaty demands.

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The paper was submitted as a Diploma at the University of Vienna and was graded by Prof.Dr.G. Winckler. It was part of a project in collaboration with Dr. Hochreiter E. from the National Bank of Austria and Prof. Rovelli R. from the Universita Commerciale Luigi Bocconi.

The results of this project where published as 

Hochreiter E., R. Rovelli and G. Winckler (1996) Central Banks and Seigniorage: A Study of Three Economies in Transition, European Economic Review, 40(3-5), April 1996, pp. 629-43 (where Czechoslovakia was also considered).