Heterogeneous corruption and inflation-Reference-Cited by-同舟云学术

Heterogeneous corruption and inflation

Published:2019-02-07 Issue:2 Volume: Page:81-96
ISSN:0042-8736
Container-title:Voprosy Ekonomiki
language:
Short-container-title:Vopr. èkon.

Author:

Kavitskaya I. L.¹,Safonov I. N.¹

Affiliation:

1. National Research University Higher School of Economics

Abstract

The article analyzes the simultaneous influence of different types of corruption on inflation in the absence of seignorage. Basing on the model of fiscal and monetary policymakers behavior, we analyze the joint impact of “grand” and “petty cash” corruption on economy in short and long term in discretionary policy and rational expectation assumptions. Research findings demonstrate that even in the absence of seignorage heterogeneous corruption relates to inflation differently in short and long term: in the first case, relationship is positive and straightforward, in the second, some indirect effects take place what reduces equilibrium inflation in the long run compared to the short run.

Publisher

NP Voprosy Ekonomiki

Subject

Economics and Econometrics,Finance

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