EconPapers    
Economics at your fingertips  
 

Some benefits of reducing inflation in transition economies

Monika Blaszkiewicz, Jerzy Konieczny, Anna Myslinska, Artur Radziwil and Wozniak Przemyslaw

No 16/2002, BOFIT Discussion Papers from Bank of Finland, Institute for Economies in Transition

Abstract: We analyse welfare effects of the interactions between the tax system and inflation in Poland and in Ukraine, using the framework developed by Feldstein (1997, 1999).This approach stresses the fact that inflation increases distortions created by the tax system, in particular distortions to intertemporal saving decisions.We find that the effects are much smaller in the two transition countries than in developed marketeconomies.The reason is that taxation of investment returns is much more limited.Our results suggest that taxes on investment returns should be avoided in any future redesign of the tax system.

Date: 2002-12-30
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://helda.helsinki.fi/bof/bitstream/123456789/8208/1/106554.pdf (application/pdf)

Related works:
Working Paper: Some Benefits of Reducing Inflation in Transition Economies (2003) Downloads
Working Paper: Some benefits of reducing inflation in transition economies (2003) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bof:bofitp:2002_016

Access Statistics for this paper

More papers in BOFIT Discussion Papers from Bank of Finland, Institute for Economies in Transition Bank of Finland, BOFIT, P.O. Box 160, FI-00101 Helsinki, Finland. Contact information at EDIRC.
Bibliographic data for series maintained by Minna Nyman ().

 
Page updated 2021-04-03
Handle: RePEc:bof:bofitp:2002_016