Corruption, inflation and growth

Keith Blackburn and Jonathan Powell

Economics Letters, 2011, vol. 113, issue 3, 225-227

Abstract: We present a model in which the embezzlement of tax revenues by public officials leads the government to rely more on seigniorage to finance its expenditures. This raises inflation which depresses investment and growth via a cash-in-advance constraint.

Keywords: Corruption; Inflation; Seigniorage; Growth (search for similar items in EconPapers)
JEL-codes: D73 E6 H6 O42 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:113:y:2011:i:3:p:225-227

DOI: 10.1016/j.econlet.2011.06.015

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