Monetary Policy and International Remittances.
This article studies the response of Mexico’s monetary policy to inflows of workers’ remittances. Previous studies have shown that remittances can have an impact on several macroeconomic variables of the receiving country (e.g. exchange rate, inflation and output, among others). Mexico has the large...
| Main Authors: | , |
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| Format: | Journal article |
| Language: | English |
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Johns Hopkins University Press
2010
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| _version_ | 1797070423488200704 |
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| author | Ruiz, I Vargas-Silva, C |
| author_facet | Ruiz, I Vargas-Silva, C |
| author_sort | Ruiz, I |
| collection | OXFORD |
| description | This article studies the response of Mexico’s monetary policy to inflows of workers’ remittances. Previous studies have shown that remittances can have an impact on several macroeconomic variables of the receiving country (e.g. exchange rate, inflation and output, among others). Mexico has the largest inflow of remittances in Latin America and the second largest inflow in the world. As such, it may be the case that the monetary authority in Mexico is taking these flows into account when selecting their monetary policy stance. Overall, the results of this study indicate that remittance shocks do not have a large impact on Mexico’s monetary policy variables. This seems to suggest that Mexico’s Central Bank main concern is inflation and that the potential appreciation of the Mexican currency as a result of increased remittance inflows might not be a priority. |
| first_indexed | 2024-03-06T22:38:36Z |
| format | Journal article |
| id | oxford-uuid:5ac4aeea-7674-4144-a79a-5f4a99fa40f5 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T22:38:36Z |
| publishDate | 2010 |
| publisher | Johns Hopkins University Press |
| record_format | dspace |
| spelling | oxford-uuid:5ac4aeea-7674-4144-a79a-5f4a99fa40f52022-03-26T17:17:50ZMonetary Policy and International Remittances.Journal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:5ac4aeea-7674-4144-a79a-5f4a99fa40f5EnglishDepartment of Economics - ePrintsJohns Hopkins University Press2010Ruiz, IVargas-Silva, CThis article studies the response of Mexico’s monetary policy to inflows of workers’ remittances. Previous studies have shown that remittances can have an impact on several macroeconomic variables of the receiving country (e.g. exchange rate, inflation and output, among others). Mexico has the largest inflow of remittances in Latin America and the second largest inflow in the world. As such, it may be the case that the monetary authority in Mexico is taking these flows into account when selecting their monetary policy stance. Overall, the results of this study indicate that remittance shocks do not have a large impact on Mexico’s monetary policy variables. This seems to suggest that Mexico’s Central Bank main concern is inflation and that the potential appreciation of the Mexican currency as a result of increased remittance inflows might not be a priority. |
| spellingShingle | Ruiz, I Vargas-Silva, C Monetary Policy and International Remittances. |
| title | Monetary Policy and International Remittances. |
| title_full | Monetary Policy and International Remittances. |
| title_fullStr | Monetary Policy and International Remittances. |
| title_full_unstemmed | Monetary Policy and International Remittances. |
| title_short | Monetary Policy and International Remittances. |
| title_sort | monetary policy and international remittances |
| work_keys_str_mv | AT ruizi monetarypolicyandinternationalremittances AT vargassilvac monetarypolicyandinternationalremittances |