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.  2000 Elsevier Science B.V. All rights reserved.

T his paper examines the effect of factors on the development of commercial banking in Iraq. Seven factors used as determinates for financial depth which are per capita GDP, inflation rate, government budget deficit, share of state-owned banks of total assets as proxy of financial repression, oil sector domination, international trade openness and political stability as explanatory v...

This paper provides a rationale for the relatively poor macroeconomic performance in the post-Soviet transition economies based upon the concept of financial repression. Policies undertaken to assist in financing government expenditures caused financial repression and financial fragmentation, to use the terms introduced by McKinnon (1973). After an introductory section, I introduce a theoretica...

The paper analyzes the effects of financial liberalization on inflation. We develop a monetary and endogenous growth, dynamic general equilibrium model of a small open semi-industrialized economy, with financial intermediaries subjected to obligatory ”high” reserve ratio, serving as the source of financial repression. When calibrated to four Southern European semi-industrialized countries, name...

in the recent economic literature, an important finding is the causal relationship between financial development and economic growth. before the 1970s, the most of economists believed that economic growth could be reached only by accumulation of physical capital. in the 1970s and after the pioneering works of mckinon (1973) and shaw (1973), this orthodox view was criticized by a vast amount of ...