Un modelo IS/LM con economía ilegal y lavado de dinero

Modeling illegal economy and money laundering: an IS/LM framework

Sadri Slim

MPRA Paper from University Library of Munich, Germany

Abstract: The purpose of this paper is to present an extended version of the IS/LM model, with illegal economy and money laundering in a closed economy, which allows an macroeconomic analysis of the effects of this presence on short-term equilibrium. Without disregarding the FATF´s money laundering typology, we propose to differentiate the money laundering activities by the degree of crime organization. Thus, in a closed economy, we suppose two money laundering channels, through consumption and investment, which are reflecting the reintegration of the illegal money by individual criminals and by the organized crime. It is shown that the multiplier effect of the illegal economic activities is always negative on formal GDP, while the effect on the interest rate depends on the structure of the considered economy.

Keywords: Money Laundering; ISLM Model; Multiplier effects; Informal Economy (search for similar items in EconPapers)
JEL-codes: E12 E26 E4 O17 (search for similar items in EconPapers)
Date: 2013-04-17
New Economics Papers: this item is included in nep-iue and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:46304

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