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ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
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http://hdl.handle.net/10419/26606
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| Title: | | Taxation, corruption and the exchange rate regime  |
| Authors: | | Hefeker, Carsten |
| Issue Date: | | 2009 |
| Series/Report no.: | | CESifo working paper 2561 |
| Abstract: | | The paper analyzes the relation between institutional quality, such as corruption, in a country and its monetary regime. It is shown that a credibly fixed exchange rate to a low inflation country, like a currency board, can reduce corruption and improve the fiscal system. A monetary union, however, has ambiguous effects. I find that there is convergence between countries with regard to the level of corruption. |
| Subjects: | | Exchange rate regime monetary policy fiscal policy seigniorage corruption developing and transition countries |
| JEL: | | D72 E63 F33 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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