This paper presents an analysis of the effect of bureaucratic corruption on economic growth through a public finance transmission channel. At the theoretical level, we develop a simple dynamic general equilibrium model in which financial intermediaries make portfolio decisions on behalf of...

This paper explores the role of the exchange rate and the interest rate as information variables in a small macroeconomic model under conditions of perfect and imperfect capital mobility. It is shown that, despite the intimate relationship between these variables via interest parity, the...