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 … between countries with regard to the level of corruption. -- Exchange Rate Regime ; Monetary Policy ; Fiscal Policy …

corruption, which is more widespread in poor countries, reduces more the electoral appeal of capitalism than that of socialism …. The empirical pattern of beliefs within countries is consistent with this explanation: people who perceive corruption to … government in economic matters). Finally, we present a model explaining the corruption-left connection. It exploits the fact that …