Islamaj, Ergys and Kose, Ayhan M. and De, Supriyo and Yousefi, S. Reza (2019): Remittances over the Business Cycle: Theory and Evidence. Published in: Economic Notes: Review of Banking, Finance and Monetary Economics , Vol. 48, No. 3 (November 2019): pp. 1-18.
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Abstract
We examine the behaviour of remittances over the business cycle and their potential to act as a ‘stabilizer’ during periods of high business cycle volatility. Two main findings are reported. First, remittances are less volatile than other foreign currency flows and do not appear to systemically comove with business cycle fluctuations. Second, remittances are relatively stable even during episodes of sharp business cycle volatility, such as those associated with sudden stops and financial crises. We also provide an overview of the theoretical literature on the implications of different motives to remit for the cyclical behaviour of remittances.
Item Type: | MPRA Paper |
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Original Title: | Remittances over the Business Cycle: Theory and Evidence |
Language: | English |
Keywords: | remittances, business cycles, acyclical, sudden stops |
Subjects: | F - International Economics > F2 - International Factor Movements and International Business > F24 - Remittances F - International Economics > F3 - International Finance > F32 - Current Account Adjustment ; Short-Term Capital Movements F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F45 - Macroeconomic Issues of Monetary Unions G - Financial Economics > G0 - General > G01 - Financial Crises |
Item ID: | 109337 |
Depositing User: | Ergys Islamaj |
Date Deposited: | 24 Aug 2021 07:25 |
Last Modified: | 24 Aug 2021 07:25 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/109337 |