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Beware of emigrants bearing gifts : optimal fiscal and monetary policy in the presence of remittances /
This paper uses a stochastic dynamic general equilibrium model to investigate the influence of countercyclical remittances on the conduct of fiscal and monetary policy and trace their effects on real and nominal variables in a business cycle setting. We show that remittances raise disposable income...
| Clasificación: | Libro Electrónico |
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| Autores principales: | , , |
| Autores Corporativos: | , |
| Formato: | Electrónico eBook |
| Idioma: | Inglés |
| Publicado: |
[Washington, D.C.] :
International Monetary Fund, IMF Institute,
©2006.
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| Colección: | IMF working paper ;
WP/06/61. |
| Temas: | |
| Acceso en línea: | Texto completo |
| Sumario: | This paper uses a stochastic dynamic general equilibrium model to investigate the influence of countercyclical remittances on the conduct of fiscal and monetary policy and trace their effects on real and nominal variables in a business cycle setting. We show that remittances raise disposable income and consumption, and insure against income shocks, thereby raising household welfare. However, remittances increase the correlation between labor and output, thereby producing a more volatile business cycle and increasing output and labor market risk. Optimal monetary policy in the presence of remittances deviates from the Friedman rule, highlighting the need for independent government policy instruments. |
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| Descripción Física: | 1 online resource (49 pages) |
| Bibliografía: | Includes bibliographical references. |
| ISBN: | 1283516357 9781283516358 9781451863215 1451863217 9781451908572 1451908571 |