Measuring fiscal seigniorage in Poland: 1990–1998

In this paper the concept of total gross seigniorage is used to analyze sources and uses of central bank seigniorage in Poland during the period 1990–1998. A comprehensive framework for measuring total seigniorage and its main components is presented and estimates of seigniorage revenues (sources and uses) are computed and analyzed. The study explains why the concept of monetary seigniorage should not be used as an estimate of government gains from money creation in transitional economies and shows that seigniorage revenues have never been extensively used as a tool for financing expenditures of Polish government.