CHEN Yufeng, GUI Binwei：Financial Repression Revenue, Public Finance and Financial Reform

Abstract：Based on public finance perspective of financial repression, this paper discusses the relation among financial repression, public finance and financial reform.When government owns poorly developed regular tax systems, financial repression can extract revenue for government.Revenue from financial repression is the main cost of financial reform, financial reform is feasible only when government owns developed regular tax systems.This paper discusses four types of financial repression revenue: traditional seigniorage, seigniorage based on interest margin, financial repression tax and implicit seigniorage.The data reveals that revenue from financial repression are great, the average magnitude of financial repression revenue accounts for 12.83% of GDP, and is 83.71% of regular fiscal revenue.With the improvement of financial capacity, the proportion of financial repression revenue in regular fiscal revenue decreased from 164.5% in the peak to 60% in 2006, which means that the fiscal base for financial reform is prepared well.

Key words： Financial Repression Revenue    Public Finance    Financial Reform    Seigniorage

source:Finance & Trade Economics ,No.6,2015