TY - BOOK ID - 84541531 TI - Monetary Policy and Public Finances : Inflation Targets in a New Perspective PY - 1999 SN - 1462358144 1452794693 1281605751 1451892128 9786613786449 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Banks and Banking KW - Inflation KW - Money and Monetary Policy KW - Public Finance KW - Economic Theory KW - Monetary Policy KW - Fiscal Policy KW - Price Level KW - Deflation KW - National Government Expenditures and Related Policies: General KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - Agriculture: Aggregate Supply and Demand Analysis KW - Prices KW - Central Banks and Their Policies KW - Monetary economics KW - Macroeconomics KW - Public finance & taxation KW - Banking KW - Economic theory & philosophy KW - Inflation targeting KW - Expenditure KW - Supply shocks KW - Monetary policy KW - Economic theory KW - Central bank autonomy KW - Central banks KW - Expenditures, Public KW - Banks and banking KW - Supply and demand KW - United Kingdom UR - https://www.unicat.be/uniCat?func=search&query=sysid:84541531 AB - This paper considers the interaction between the private sector, the monetary authority, and the fiscal authority, and concludes that unrestricted central bank independence may not be an optimal way to collect seigniorage revenues or stabilize supply shocks. Moreover, the paper shows that the implementation of an optimal inflation target results in optimal shares of government finances—seigniorage, taxes, and the spending shortfall—from society’s point of view but still involves suboptimal stabilization. Even if price stability is the sole central bank objective, a positive inflation target has important implications for the government’s finances, as well as for stabilization. ER -