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An endeavor to estimate seigniorage before the end of and immediately after the Pacific War

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  • Hattori, Takahiro
  • Oguro, Kazumasa

Abstract

This is the first research paper to analyze seigniorage in Japan before, during, and after the Pacific War. As a result of logically categorizing various definitions of seigniorage (opportunity cost approach, monetary approach, and inflation tax), we conclude that these differences pivot on the issue of whether to confine the scope of debts, which is reduced by unexpected inflation, to the usual general government debt or to expand it to the integrated government debt including the monetary base of the Bank of Japan. We also point out the possibility that, in light of the degree of reduction in government debt as a percentage of GDP during and after the Pacific War, the monetary approach or inflation tax (the cases of confining the taxation base to the usual general government debt) are appropriate means to estimate seigniorage obtained by the general government.

Suggested Citation

  • Hattori, Takahiro & Oguro, Kazumasa, 2016. "An endeavor to estimate seigniorage before the end of and immediately after the Pacific War," Journal of the Japanese and International Economies, Elsevier, vol. 41(C), pages 1-16.
    • Handle: RePEc:eee:jjieco:v:41:y:2016:i:c:p:1-16
    DOI: 10.1016/j.jjie.2016.03.003
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Keiichiro Kobayashi & Kozo Ueda, 2017. "Secular Stagnation under the Fear of a Government Debt Disaster," CIGS Working Paper Series 17-012E, The Canon Institute for Global Studies.
    2. SAITO, Makoto & 齊藤, 誠, 2017. "On wartime money finance in the Japanese occupied territories during the Pacific War: The case of instant reserve banks as bad central banks," Discussion Papers 2017-03, Graduate School of Economics, Hitotsubashi University.
    3. Saito, Makoto, 2022. "On expenditure/income discrepancies in national accounts in the presence of two price units," Japan and the World Economy, Elsevier, vol. 64(C).
    4. SHIMASAWA Manabu & OGURO Kazumasa, 2016. "Will Abenomics Save Future Generations?," Discussion papers 16100, Research Institute of Economy, Trade and Industry (RIETI).
    5. Makoto Saito, 2021. "Central Banknotes and Black Markets: The Case of the Japanese Economy During and Immediately After World War II," Advances in Japanese Business and Economics, in: Strong Money Demand in Financing War and Peace, pages 25-56, Springer.
    6. Keiichiro Kobayashi & Kozo Ueda, 2022. "Secular Stagnation and Low Interest Rates under the Fear of a Government Debt Crisis," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 54(4), pages 779-824, June.
    7. Hagiwara, Reona, 2020. "Seigniorage and Japanese fiscal sustainability: Simulation analysis using an overlapping generations model," Economic Modelling, Elsevier, vol. 84(C), pages 340-356.

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    More about this item

    Keywords

    Seigniorage; Government debt; Monetary base; Inflation; During and after the War;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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