Beware of emigrants bearing gifts : optimal fiscal and monetary policy in the presence of remittances /

Beware of emigrants bearing gifts : optimal fiscal and monetary policy in the presence of remittances /

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Bibliographic Details
Author / Creator:	Chami, Ralph, author.
Imprint:	[Washington, D.C.] : International Monetary Fund, IMF Institute, ©2006.
Description:	1 online resource (49 pages)
Language:	English
Series:	IMF working paper ; WP/06/61 IMF working paper ; WP/06/61.
Subject:	Emigrant remittances -- Econometric models. Fiscal policy -- Econometric models. Monetary policy -- Econometric models. Emigrant remittances -- Econometric models. Fiscal policy -- Econometric models. Monetary policy -- Econometric models.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12498751

Hidden Bibliographic Details
Other authors / contributors:	Cosimano, Thomas F., author. Gapen, Michael, author. International Monetary Fund. IMF Institute.
ISBN:	1283516357 9781283516358 9781451863215 1451863217 9781451908572 1451908571
Digital file characteristics:	data file
Notes:	Includes bibliographical references. Restrictions unspecified Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010. Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 digitized 2010 HathiTrust Digital Library committed to preserve Print version record.
Summary:	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.
Other form:	Print version: Chami, Ralph. Beware of emigrants bearing gifts. [Washington, D.C.] : International Monetary Fund, IMF Institute, ©2006

Description
Summary:	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.
Physical Description:	1 online resource (49 pages)
Format:	Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.
Bibliography:	Includes bibliographical references.
ISBN:	1283516357 9781283516358 9781451863215 1451863217 9781451908572 1451908571