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Financial Repression and Optimal Taxation

Economics Letter, Vol. 70, No. 2, pp. 245-251, Feb. 2001
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  • Usage
    1,278
    • Abstract Views
      1,278

Paper Description

Financial repression entails an implicit taxation on savings. When effective income-tax rates are very uneven, as common in developing countries, raising some government revenue through mild financial repression can be more efficient than collecting income tax only.

Bibliographic Details

Chong-En Bai; David D. Li; Yingyi Qian; Yijiang Wang

Financial repression; Savings tax; Optimal taxation; Flat tax

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