Working Paper No. 1083

Renovatio Monetae: Gesell Taxes in Practice

Published: September 8, 2015Pages: 53Keywords: Seigniorage; Gesell tax; Periodic re-coinage: Cash-in-advance modelJEL-codes: E31; E42; E52; N13

Renovatio Monetae: Gesell Taxes in Practice Roger Svensson and Andreas Westermark


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.

Roger Svensson

Contact

Ph: +46 8 665 4549
Mob: +46 70 491 0166
roger.svensson@ifn.se

Integrating Immigrants into the Nordic Labour Markets

An Overall Perspective

Pages-from-2019-Calmfors-Gassen---Integrating-Immigrants-into-the-Nordic-Labour-Markets.gif

Denmark, Finland, Norway and Sweden face similar problems of integrating large groups of immigrants, especially low-educated ones from outside the EU, into their labour markets. In this volume, edited by Lars Calmfors, IFN, and Nora Sánchez Gassen in cooperation with researchers from across the Nordic Region analyse how labour market integration of immigrants can be promoted. 

About the book

Events

Seminars organized by IFN

 

To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

Academically oriented seminars are most of the time held on Wednesdays at 10 am. At these events researchers from IFN and other institutions present their research.

In addition, IFN organizes seminars open to the public. Topics for these are derived from the IFN research.

Research Institute of Industrial Economics, Grevgatan 34 - 2 fl, Box 55665, SE-102 15 Stockholm, Sweden | Phone: +46-(0)8-665 45 00 | info@ifn.se