| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP15299 |
| DP15299 Monetary Capacity | |
| Roberto Bonfatti; Adam Brzezinski; Kivanç Karaman; Nuno Palma | |
| 发表日期 | 2020-09-27 |
| 出版年 | 2020 |
| 语种 | 英语 |
| 摘要 | Monetary capacity refers to a state's capacity to circulate money that is accepted by the public, whereas fiscal capacity refers to its capacity to tax. In this paper, we show both theoretically and empirically that monetary and fiscal capacity, and by extension, markets and states have a symbiotic relationship. On the theoretical front, we propose a model that establishes that a higher monetary capacity incentivizes the government to invest in the capacity to tax, because monetization eases taxation. Higher fiscal capacity, in turn, increases the public demand for money, because expected inflation is lower. On the empirical front, we find that monetary capacity had a significant and substantial causal impact on fiscal capacity. To identify this impact, we rely on a natural experiment, instrumenting the money stocks of England, France and Spain between 1550 and 1790 by the silver and gold output in the New World. Finally, to put our findings into a long-run perspective, we collect money stock and tax revenue data for European states from antiquity to the modern period, and document the close relationship between the two. These findings indicate that economic and political development cannot be understood independently. They also qualify the theory of the long-run neutrality of money: exogenous changes in money stock can and did have real long-run effects. |
| 主题 | Economic History ; Macroeconomics and Growth ; Monetary Economics and Fluctuations ; Public Economics |
| 关键词 | Monetary capacity Fiscal capacity Monetization inflation Taxation Quantity theory of money Monetary non-neutrality |
| URL | https://cepr.org/publications/dp15299-0 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/544300 |
| 推荐引用方式 GB/T 7714 | Roberto Bonfatti,Adam Brzezinski,Kivanç Karaman,et al. DP15299 Monetary Capacity. 2020. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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