Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Research Institute of Industrial Economics (IFN) Working Paper Series

No 1083:
Renovatio Monetae: Gesell Taxes in Practice

Roger Svensson () and Andreas Westermark ()

Abstract: Gesell taxes on money holdings have received attention in recent decades as a way of alleviating the zero lower bound on interest rates. Less known is that such a tax was the predominant method used to generate seigniorage in large parts of medieval Europe for around two centuries. When the Gesell tax was levied, current coins ceased to be legal tender and had to be exchanged into new coins for a fee – an institution known as renovatio monetae or periodic re-coinage. This could occur as often as twice a year. Using a cash-in-advance model, prices increase over time during an issue period and falls immediately after the re-coinage date. Agents remint coins and the system generates tax revenues if the tax is su˘ ciently low, if the time period between re-coinages is su˘ ciently long, and if the probability of being penalized for using illegal coins is su˘ ciently high.

Keywords: Seigniorage; Gesell tax; Periodic re-coinage: Cash-in-advance model; (follow links to similar papers)

JEL-Codes: E31; E42; E52; N13; (follow links to similar papers)

53 pages, September 8, 2015

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

wp1083.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:iuiwop:1083 This page was generated on 2016-10-06 11:15:33