Seigniorage and Public Deficit: A Test of Comparison between Turkey and Tunisia

Burak Gurbuz, Zehra Yeim Gurbuz, Hela Miniaoui, Mounir Smida

Abstract


Usually regarded as a financial advantage enjoyed by the issuers of the currency, seigniorage is the difference between the nominal value of the currency sign and the cost of its production and distribution. Historically, it took the form of the deterioration of the intrinsic value of coinage from its official value. Sometimes exceptional, revenues from this operation allow the government to finance its spending without raising new taxes. In modern economies, in the absence of deep financial markets, the state has recourse to money creation to finance its deficit. In this regard, the article proposes to evaluate the experience of two countries that have negotiated differently the process of financial liberalization: Turkey and Tunisia.

Full Text: PDF DOI: 10.5539/ijbm.v4n9p55

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

International Journal of Business and Management   ISSN 1833-3850 (Print)   ISSN 1833-8119 (Online)

Copyright © Canadian Center of Science and Education

To make sure that you can receive messages from us, please add the 'ccsenet.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.