Corruption among central banks induces distorted policies by, first, increasing the inflation bias and, second, potentially inducing a pro-cyclical adjustment of employment. In response to a negative supply shock a corrupt central banker is tempted to decrease money supply. In this case, he...

Central banks are viewed by the general public as reputable institutions, a perception bolstered by economic theory and modeling. By extension, central bankers are thought of as benevolent, as decent men and women attempting to maximize societal welfare through their decisions. Yet, cases of...

Recent empirical studies claim that, in addition to levels of corruption, investors are deterred by its unpredictability. I claim instead that it is petty corruption that deters investors. I employ seven subcomponents of corruption for a sample of 102 countries that appear in the 2003 Global...