Taxation, corruption and the exchange rate regime

Carsten Hefeker

No 2-12, HWWI Research Papers from Hamburg Institute of International Economics (HWWI)

Abstract: 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.

Keywords: Exchange Rate Regime; Monetary Policy; Fiscal Policy; Seigniorage; Corruption; Developing and Transition Countries (search for similar items in EconPapers)
JEL-codes: D72 E63 F33 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/48222/1/66401769X.pdf (application/pdf)

Related works:
Journal Article: Taxation, corruption and the exchange rate regime (2010)
Working Paper: Taxation, Corruption and the Exchange Rate Regime (2009)
Working Paper: Taxation, Corruption and the Exchange Rate Regime (2009)
Working Paper: Taxation, Corruption and the Exchange Rate Regime (2008)
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:zbw:hwwirp:2-12

Access Statistics for this paper

More papers in HWWI Research Papers from Hamburg Institute of International Economics (HWWI) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().