المستخلص: |
Financial repression has long been as considered an implicit tax granted to the authorities in the form of government revenues. However, if financial repression generates important implicit revenues, it must be admitted that these benefits come have a cost that governments often ignore. This article discusses the role and cost of non-tax revenues of financial repression in financing public expenditure. Two types of non tax revenues involved in public debt are considered, which constitute a budgetary constraint of government is: the income from financial repression and the inflationary tax. Using annual data, a VEC model is constructed to estimate the impact of these revenues on Algerian public expenditures. Based on the results of the estimation, the causality tests, the impulse analysis and the theory of the implication of the public finances in the financial repression, the main conclusion is that at short run, public expenditure are financed in large part by revenues non tax of financial repression. But in the long run, these benefits generated by financial repression translate into a higher cost in terms of public spending.
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