01 Jan 2000 - 01 Jun 2001
budget policy, Europe, Macroeconomics and macroeconomic policy, monetary policy, Research

Seignorage as a Means of Financing the State Budget: an analysis of Factors Defining the Size of National Bank of Poland Revenues from Conducting a Monetary Policy and the Amount of Funds Diverted to te Budget

The project was funded by the State Committee for Scientific Research during the period from January 2000 to June 2001. The basic aims of the project included:

  • the development of the specific methodology for the estimation of the seigniorage revenues of the National Bank of Poland, and its application for the analysis of the factors that determine the magnitude of the transfers from the central bank to the budget
  • explanation of the links between growth of the monetary base (and inflation rate), policy of the central bank and budgetary gains from the seigniorage
  • and the analysis of legal regulations of central bank operations and operational procedures of NBP.

Results of the project show that central bank with operational independence can influence the magnitude of the budgetary gains from seigniorage (even without any monetary base growth), and that an increase in the scope of budgetary financing can be achieved by increasing the central bank's efficiency instead of by raising the monetary base and the rate of inflation.

A summary conference was held on 18 May 2001 in Warsaw.

Results of the research were published in the working paper series Study and Analysis No. 227, 228, 229 i 230 (in Polish), CASE Reports No. 42 (in Polish) as well as within the series CASE - CEU Working Papers Series no. 37.