Gupta, Rangan; Ziramba, Emmanuel - Department of Economics, Faculty of Economic and … - 2008
Using a simple pure-exchange overlapping generations model characterized by financial repression, purposeful government … expenditures and cost of tax collection, we analyze whether financial repression can be explained by the cost of raising taxes. We … financial repression being pursued as an optimal policy by the consolidated government. However, when public expenditures are …