The relationship among reserve ration, government spending and economic growth was analyzed. A monetary endogenous growth model is well developed by taking into account the growth-enhancing effects of reserve-augmenting seigniorage. If the government spends all the seigniorage revenue on the provision of a public input which has positive externality on the private sectors production, some results to be utterly different from Bronxs have been obtained: the economy has a unique saddle-balanced growth path, but it has nothing to do with reserve ratio. However, the higher reserve ratio, the faster speed of economic convergence.