In this paper we discuss the functioning of the foreign exchange rate system. We start by giving a historical account of the different exchange rate systems around the world. Next, we discuss the determinants of a currency's value according to the main theories of exchange rate determination....

The continued economic crisis has become a major test for the labour markets of individual member states. Labour mobility within the European Union has the potential to help to reduce labour market pressures and ease economic imbalances. However, a long-term loss of working age population can be...

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...

This book comprehensively examines the role of economic growth (or lack of) as a driver of migration, as well as the impact of migration on economic growth in receiving and sending countries. Seminal papers have been selected which cover both, direct and indirect effects, as well as theoretical...

This article documents the business cycle properties of workers' remittance flows to Mexico. We also discuss key differences between the cyclical properties of remittance inflows and the cyclical properties of foreign direct investment (FDI). We find evidence that remittances are countercyclical...

The author analyzes the relationship between remittances, exchange rates, and money demand in Mexico. He finds that shocks to remittances have a positive impact on domestic money demand. The results also suggest the existence of a bi-directional relationship between remittances and the exchange...