Financial Repression and Optimal Taxation
Posted: 11 Jan 2001
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.
Keywords: Financial repression, Savings tax, Optimal taxation, Flat tax
JEL Classification: H2, O16, E5, G28
Suggested Citation: Suggested Citation