1.

Record Nr.

UNINA9910972469303321

Autore

Gapen Michael

Titolo

Beware of Emigrants Bearing Gifts : : Optimal Fiscal and Monetary Policy in the Presence of Remittances / / Michael Gapen, Thomas Cosimano, Ralph Chami

Pubbl/distr/stampa

Washington, D.C. : , : International Monetary Fund, , 2006

ISBN

9786613828804

9781462380084

1462380085

9781452714837

1452714835

9781283516358

1283516357

9781451908572

1451908571

Edizione

[1st ed.]

Descrizione fisica

1 online resource (51 p.)

Collana

IMF Working Papers

Altri autori (Persone)

ChamiRalph

CosimanoThomas

Soggetti

Emigrant remittances - Econometric models

Fiscal policy - Econometric models

Monetary policy - Econometric models

Aggregate Factor Income Distribution

Balance of payments

Comparative or Joint Analysis of Fiscal and Monetary Policy

Consumption

Demand and Supply of Labor: General

Economics

Exports and Imports

Financial Markets and the Macroeconomy

Income economics

Income tax

Income

International economics

International finance

Labor market

Labor supply

Labor taxes

Labor



Labour

Macroeconomics

Macroeconomics: Consumption

National accounts

Personal Income and Other Nonbusiness Taxes and Subsidies

Remittances

Saving

Stabilization

Taxation

Taxes

Treasury Policy

Wealth

Welfare & benefit systems

United States

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

"March 2006."

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

""Contents""; ""I. INTRODUCTION""; ""II. REMITTANCES""; ""THEIR MOTIVATION""; ""III. A STOCHASTIC MONETARY ECONOMY""; ""IV. THE RAMSEY EQUILIBRIUM""; ""V. RESULTS""; ""VI. CONCLUSION""; ""References""

Sommario/riassunto

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.