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; Seigniorage, Corruption ; Developing and Transition Countries …
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loss associated with seigniorage, the inability to conduct an independent monetary policy and the relative ineffectiveness …
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Differential tax analysis is used to show how the socially optimal fiscal-tax to liquidity-tax ratio changes with the relative size of the tax-evading hidden economy. The smaller the relative size of the hidden economy, the larger the optimal fiscal-tax to liquidity-tax ratio. The empirical...
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