Money laundering as an actor in Economy (economic approach)

Money laundering has a corrosive effect on a country's economy and social
welfare and in economic terms violates business decisions, increases the risk of
bank failures, undertakes control of the economic policy of the government, in a
word damages the reputation of the country. All definitions for money laundering
has common word “money”.For economists it is not clear exactly what type or form
of ‘money’ its means actually in various definitions. Depending on the definition, it
can be a stock or flow, `proceeds`, `wealth` or `income`.
This paper will try to analyze different approaches from different
economics researchers about money laundering as actor in economy. There are
several negative effects that money laundering make it to economy as effects on the
real sector (business activities, on relative prices, consumption, saving, output,
growth), influence on the public sector (revenues, privatization efforts),effects on
the monetary economy and the financial sector. In this paper also will be provide
several conclusions and further movements to improve position of economy in
money laundering story as actor.
Key words: money, money laundering, impact, economy