The Effects of Corruption and Seigniorage on Growth and Inflation

Identificador:  PC:2262

Handle: https://hdl.handle.net/20.500.11797/PC2262

Autors:  Garcia Fortuny, Judit

Resum:
In the last two decades, cases of corruption have been unveiled in different countries, raising public awareness and reinforcing a trend in which society expects more from their leaders. Our objective in this paper is to examine the effects of corruption and seigniorage on inflation and growth rates. The model used in this article is an extension of the model used by Huang and Wei (2006). We find interesting results and one of them is that, under some conditions, corruption has a positive impact on the growth rate. JEL classification : D73, E52, E58, E62. Keywords : Corruption; Fiscal Policy; Growth; Monetary Policy; Seigniorage.