Fiscal Sustainability in Remittance-Dependent Economies
Author/Editor: Michael T. Gapen, Yasser Abdih, Amine Mati, Ralph Chami
Release Date: © September, 2009
ISBN: 978-1-45187-337-5
Stock #: WPIEA2009190
English
Stock Status: Available
Languages and formats available
| English | French | Spanish | Arabic | Russian | Chinese | Portuguese | |
| Paperback | Yes | ||||||
| Yes |
Description
We investigate the impact of remittances on public debt sustainability and detail how the traditional debt-to-GDP ratio can be modified to create a more accurate representation of debt sustainability for a country that receives significant remittance inflows. The main result is that inclusion of remittances into the traditional debt sustainability analysis alters the amount of fiscal adjustment required to place debt on a sustainable path. While preliminary, these results are indicative of how a one-size-fits-all stability analysis may be inappropriate when evaluating the stance of fiscal policy for countries with different balance of payments characteristics.
Keywords
Fiscal Sustainability, Remittance-dependent Economies, Capital Inflows, Debt Burden, Debt Sustainability, Developing Countries, Economic Models, Fiscal Management, Gross Domestic Product, Private Savings, Public Debt, Workers Remittances
Taxonomy
Demand for money,
Economic policy,
International financial system,
Monetary policy,
Remittances
More publications in this series: Working Papers
More publications by: Michael T. Gapen ; Yasser Abdih ; Amine Mati ; Ralph Chami
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