Taxation, corruption and the exchange rate regime

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 2561

Classification and Topics

• Classification: Wirtschaft ; Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior ; Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy ; International Monetary Arrangements and Institutions
• Subject: Exchange rate regime ; monetary policy ; fiscal policy ; seigniorage ; corruption ; developing and transition countries ; Politische Stabilität ; Wechselkurssystem ; Finanzpolitik ; Inflation ; Korruption ; Münzgewinn ; Aufstrebende Märkte ; Übergangswirtschaft ; Schwellenländer ; Entwicklungsländer

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hefeker, Carsten
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/26606
• Last update: 10.03.2025, 11:43 AM CET