Seigniorage Compensation for Swaziland and Policy Implication.

Mkhonta, Simiso F. (1992): Seigniorage Compensation for Swaziland and Policy Implication.

Abstract

Seigniorage compensation for Swaziland is found to depend on Emalangeni in circulation in Swaziland besides the obvious effect of an increase in ZAR/Rands in circulation in South Africa. Where a percent increase in Emalangeni in circulation in Swaziland at time t decreases seigniorage compensation by 0.186 percent and a percent increase in Emalangeni in circulation at time t-1 decreases seigniorage compensation by 0.134 percent through both substitution and base effects respectively. Thus a conservative monetary policy is recommended to sustain seigniorage upwards, to arrest inflationary pressures and sustain the fixed exchange rate.

• Item Type: MPRA Paper
• Language: English
• Keywords: seigniorage, ZAR/Rand, Emalangeni/SZL
• Subjects: E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies

References

Thembi Langa, “Monetary Policy in Swaziland” Paper presented at a conference on Monetary Policy Frameworks in Africa in Pretoria, 17-19 September 2001. www.resbank.co.za/Lists/... /Attachments/57/Swaziland.pdf

The Bilateral Monetary Agreement, South Africa-Swaziland, 18 April 1986, Ministry of Finance, Swaziland Financial Agreements www.imf.org/external/pubs/ft/wp/2012/wp12136.pdf

The Multilateral Monetary Agreement, Lesotho-Namibia-South Africa-Swaziland, 27 March 1992, Ministry of Finance, Swaziland Financial agreements, www.acronymfinder.com/Common-Monetary-Area-(South-African-economic-zone)-(CMA).htm

The Trilateral Monetary Agreement, Lesotho-Namibia-South Africa-Swaziland, 5 December 1974, Ministry of Finance Swaziland Financial Agreements, www.finforum.co.za/regional/bispap17o.pdf