Can Tight and Centralized Financial Regulation Prevent Financial Crises? Czech Governmental Bond Seignorage in the Historical Perspective

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F11%3A00176041" target="_blank" >RIV/62156489:43110/11:00176041 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Can Tight and Centralized Financial Regulation Prevent Financial Crises? Czech Governmental Bond Seignorage in the Historical Perspective

Original language description

Can tight and centralized financial regulation prevent financial crises? Governments usually respond to financial crises with tightening and centralizing financial regulation. In this paper, we explore the historical parallels between the governmental responses to the financial crises at the end of the 19th and the beginning of the 20th century in the USA and the recent response of the European Union. Our rent-seeking model with endogenous rent derived from the historical narrative predicts that tight and centralized financial regulation might increase the risk of inflationary monetary policy. To illustrate our findings on an empirical example, we calculated the Czech governmental bond seignorage that represents rent extracted through inflationary monetary policy.

Czech name

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Czech description

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Type

O - Miscellaneous

CEP classification

AH - Economics

OECD FORD branch

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Project

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Continuities

Z - Vyzkumny zamer (s odkazem do CEZ)

Publication year

2011

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů