Taxation, corruption and the exchange rate regime

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.

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Year of publication:	2009
Authors:	Hefeker, Carsten
Publisher:	Munich : Center for Economic Studies and ifo Institute (CESifo)
Subject:	Politische Stabilität \| Wechselkurssystem \| Finanzpolitik \| Inflation \| Korruption \| Münzgewinn \| Aufstrebende Märkte \| Übergangswirtschaft \| Schwellenländer \| Entwicklungsländer \| Exchange rate regime \| monetary policy \| fiscal policy \| seigniorage \| corruption \| developing and transition countries

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Series:	CESifo Working Paper ; 2561
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	592902617 [GVK] hdl:10419/26606 [Handle]
Classification:	D72 - Economic Models of Political Processes: Rent-Seeking, Elections, Legistures, and Voting Behavior ; E63 - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization ; F33 - International Monetary Arrangements and Institutions
Source:	EconStor

Persistent link: https://www.econbiz.de/10010264571