The large and stable inflow of workers' remittances through formal financial channels to developing countries prompted … cross-border labor mobility emphasizing fiscal policy. The flow of remittances is the result of a household's optimizing … between remittances and domestic output depends on the sources of the shocks. Third, our results indicate that the equilibrium …

to financial markets and test whether remittances are countercyclical and serve as an insurance mechanism against … secular increase in the trend growth of remittances and random cyclical fluctuations around this trend. In a purely … households facing an increasing trend for remittances. A flexible floating regime is preferred when unanticipated shocks driving …