Journal article

Authors list: Machasio, I; Tillmann, P

Publication year: 2023

Pages: 545-561

Journal: Review of World Economics

Volume number: 159

Issue number: 3

Open access status: Hybrid

DOI Link: https://doi.org/10.1007/s10290-022-00478-x

Publisher: Springer

Abstract: 

Remittance inflows are driven by macroeconomic conditions in the home and the host economies, respectively. In this paper, we study the effect of US monetary policy on remittance flows into economies in Latin American and the Caribbean. The role of Fed policy for remittances has not yet been studied. We estimate a series of panel local projections for remittance inflows into eight countries. A surprise change in US monetary conditions has a strong and highly significant negative effect on inflows. Our finding remains robust if we change the sample period or include additional variables. Hence, our paper establishes a remittance-channel through which the Fed affects the business cycle abroad.

Harvard Citation style: Machasio, I. and Tillmann, P. (2023) Remittance flows and US monetary policy, Weltwirtschaftliches Archiv = Review of world economics, 159(3), pp. 545-561. https://doi.org/10.1007/s10290-022-00478-x

APA Citation style: Machasio, I., & Tillmann, P. (2023). Remittance flows and US monetary policy. Weltwirtschaftliches Archiv = Review of world economics. 159(3), 545-561. https://doi.org/10.1007/s10290-022-00478-x