Remittances Over the Business Cycle: Theory and Evidence
Abstract
This paper examines the behavior of remittances over the business cycle and their potential to act as a stabilizer during periods of high business cycle volatility. Four main findings are reported. First, in theory, the cyclical behavior of remittances depends on the motives to remit. Second, remittances are less volatile than other foreign currency flows but do not appear to systemically co-move with business cycle fluctuations. Third,...
Paper Details
Title
Remittances Over the Business Cycle: Theory and Evidence
Published Date
Jan 1, 2016
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