The paper explains the importance and the incomes of inflationary finance, the maximum income, and the corresponding inflation rate, and the OPTIMAL level of application of this instrument. The empirical researches suggest that except for the hyper-inflationary cases, inflationary finance does not play a significant role in financing government expenditures.The calculation of inflationary finance income and its maximum amount and the corresponding inflation rate has been a concern for economists. The results of investigations suggest that usually the seignior age increases with an increase in monetary base and inflation rate. However, in many studies, maximum income is achieved by a certain rate of inflation. When the inflation exceeds the certain rate inflationary tax will decrease. Incorporating the welfare costs of inflation in inflationary finance income calculation will yield the OPTIMAL inflationary finance. The study shows that, first, the social cost of seignior age income, and the tax should be equal. Secondly, a one percent increase in government income as a fraction of gross domestic product GDP will increase the inflation by 1.8 percent.

Due to the poor development of the domestic financial markets in Iran, a lack of efficient tax system and some restrictions on foreign borrowing in recent decades, the government budget deficit was mainly financed through borrowing from either the central bank or through the selling of the oil revenue dollars to the central bank, both of which led to increased monetary base. It caused to increase the rate of inflation as well. While printing money creates revenue through SEIGNIORAGE for the government, it decreases the purchasing power of the money and people prefer to hold less cash money because of the inflationary effects of monetization of budget deficit and finally it will reduce the SEIGNIORAGE revenue of the government. The aim of this article is to analysis SEIGNIORAGE revenue in Iran using money demand function approach. The Johansen-Juselius Cointegration technique is used to estimate the empirical model using annual data over the period 1961-2007. The results of estimates show that semi elasticity of inflation rate is negative of 5/59 and the elasticity of GDP per capita is positive of 2/36 in long run. After first oil boom, SEIGNIORAGE-maximizing rate of inflation, except during the period of war, is lower than the actual rate of inflation. According to the result, the economy is generally on the wrong side of the Laffer curve. The result does not depend on whether the expectations of agents form adaptively or rationally.

In this paper, a novel risk-based, two-objective (technical and economical) OPTIMAL reactive power dispatch method in a wind-integrated power system is proposed which is more consistent with operational criteria.  The technical objective includes the minimization of the new voltage instability risk index. The economical objective includes cost minimization of reactive power generation and active power loss. The proposed voltage instability risk employs a hybrid possibilistic (Delphi-Fuzzy)-probabilistic approach that takes into consideration the operator’s experience, the wind speed and demand forecast uncertainties when quantifying the risk index. The decision variables are the reactive power resources of the system. To solve the problem, the modified multi-objective particle swarm optimization algorithm with sine and cosine acceleration coefficients is utilized. The method is implemented on the modified IEEE 30-bus system. The proposed method is compared with those in the previously published literature, and the results confirm that the proposed risk index is better at estimating the voltage instability risk of the system, especially in cases with severe impact and low probability. In addition, according to the simulation results compared to typical security-based planning, the proposed risk-based planning may increase the security and economy of the system due to better utilization of system resources.

The purpose of this paper is to determine the association between Central bank independence and SEIGNIORAGE in developing countries. Theoretically, more central bank independence would mean less reliance of government on SEIGNIORAGE since the decision to raise any revenue from SEIGNIORAGE is left to the Central bank. Although some caution is needed owing to the definition, measurement and data limitations, the empirical cross country evidence from the present paper using a sample of 40 developing countries for the period 1974-1990 indicate a surprising positive and statistically significant association between SEIGNIORAGE and the Central bank independence index based on office term of the Central bank governors in these countries. The results suggest that we should either interpret a longer term in office as an indication of low level of independence in developing countries or to conclude that the Central banks may keep and even spend part of the SEIGNIORAGE in these countries. Bearing in mind the institutional and cultural relations, the author thinks that the first interpretation is more justifiable in these countries.