Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
966032 | Journal of Macroeconomics | 2010 | 9 Pages |
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.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Carsten Hefeker Carsten Hefeker,