Repressed financial systems as instruments of taxation : evidence from Iceland
The paper discusses how inflation and direct government intervention in the financial sector can be used as a substitute for tax revenue and as a means for redistributing resources. Five stages of financial repression are identified and data presented which suggest that the post-war economy of Icela...
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| Format: | Article in Journal/Newspaper |
| Language: | unknown |
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| Online Access: | http://taloustieteellinenyhdistys.fi/images/stories/fep/f1990_1b.pdf |
| Summary: | The paper discusses how inflation and direct government intervention in the financial sector can be used as a substitute for tax revenue and as a means for redistributing resources. Five stages of financial repression are identified and data presented which suggest that the post-war economy of Iceland has belonged to the fifth and highest stage. The industrial organization of a repressed financial system is examined along with the forces that undermined the Icelandic financial system. The final section introduces the dilemmas of financial liberalization. |
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