05194oam 22013454 450 991081759480332120230828235824.01-4623-8008-51-4527-1483-51-283-51635-797866138288041-4519-0857-1(CKB)3360000000443807(EBL)3014314(SSID)ssj0000940073(PQKBManifestationID)11571941(PQKBTitleCode)TC0000940073(PQKBWorkID)10938244(PQKB)10256234(OCoLC)698585490(MiAaPQ)EBC3014314(IMF)WPIEE2006061(EXLCZ)99336000000044380720020129d2006 uf 0engtxtccrBeware of Emigrants Bearing Gifts : Optimal Fiscal and Monetary Policy in the Presence of Remittances /Michael Gapen, Thomas Cosimano, Ralph ChamiWashington, D.C. :International Monetary Fund,2006.1 online resource (51 p.)IMF Working Papers"March 2006."1-4518-6321-7 Includes bibliographical references.""Contents""; ""I. INTRODUCTION""; ""II. REMITTANCES""; ""THEIR MOTIVATION""; ""III. A STOCHASTIC MONETARY ECONOMY""; ""IV. THE RAMSEY EQUILIBRIUM""; ""V. RESULTS""; ""VI. CONCLUSION""; ""References""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.IMF Working Papers; Working Paper ;No. 2006/061Emigrant remittancesEconometric modelsFiscal policyEconometric modelsMonetary policyEconometric modelsExports and ImportsimfLaborimfMacroeconomicsimfTaxationimfFinancial Markets and the MacroeconomyimfComparative or Joint Analysis of Fiscal and Monetary PolicyimfStabilizationimfTreasury PolicyimfRemittancesimfDemand and Supply of Labor: GeneralimfAggregate Factor Income DistributionimfMacroeconomics: ConsumptionimfSavingimfWealthimfPersonal Income and Other Nonbusiness Taxes and SubsidiesimfInternational economicsimfLabourimfincome economicsimfWelfare & benefit systemsimfLabor supplyimfIncomeimfConsumptionimfLabor taxesimfBalance of paymentsimfNational accountsimfTaxesimfInternational financeimfLabor marketimfEconomicsimfIncome taximfUnited StatesimfEmigrant remittancesEconometric models.Fiscal policyEconometric models.Monetary policyEconometric models.Exports and ImportsLaborMacroeconomicsTaxationFinancial Markets and the MacroeconomyComparative or Joint Analysis of Fiscal and Monetary PolicyStabilizationTreasury PolicyRemittancesDemand and Supply of Labor: GeneralAggregate Factor Income DistributionMacroeconomics: ConsumptionSavingWealthPersonal Income and Other Nonbusiness Taxes and SubsidiesInternational economicsLabourincome economicsWelfare & benefit systemsLabor supplyIncomeConsumptionLabor taxesBalance of paymentsNational accountsTaxesInternational financeLabor marketEconomicsIncome taxGapen Michael1614208Cosimano Thomas1614209Chami Ralph1614210International Monetary Fund.IMF Institute.DcWaIMFBOOK9910817594803321Beware of Emigrants Bearing Gifts3943922UNINA