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Title:Taxation, Corruption and the Exchange Rate Regime PDF Logo
Authors:Hefeker, Carsten
Issue Date:2008
Series/Report no.:Proceedings of the German Development Economics Conference, Zürich 2008 17
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 …nd that 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:Conference Paper
Appears in Collections:Proceedings of the German Development Economics Conference, 2008 (Zürich)

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