Abstract
72% of Europeans in European Monetary Union countries think that corruption is widespread in their country. Corruption can affect the individual country’s performance and, in turn, impact on the performance of the other members of the monetary union. In this article, we will present a monetary union composed of two countries and we will study how the presence of corruption in one member country will affect its economy and the neighbour’s economy. Additionally, we will analyse what measures could reduce the negative spillover effects generated by the presence of corruption.
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