The Tale of Three Amigos: Remittances, Exchange Rates, and Money Demand in Mexico
AbstractThe 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 rate. Furthermore, positive shocks to remittances are found to have a negative impact on Mexico's real exchange rate. This indicates that remittances appreciate the Mexican peso and therefore may impact on the competitiveness of the tradable sector negatively. Copyright � 2008 The Author. Journal compilation � 2008 Blackwell Publishing Ltd.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Review of Development Economics.
Volume (Year): 13 (2009)
Issue (Month): 1 (02)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669
Other versions of this item:
- Carlos Vargas-Silva, 2007. "The Tale of Three Amigos: Remittances, Exchange Rates and Money Demand in Mexico," Working Papers 0704, Sam Houston State University, Department of Economics and International Business.
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- Rafael Domínguez Martín, 2009. "Migraciones, Desigualdad y Desarrollo en los Estados de México," Documentos de trabajo sobre cooperaciÃ³n y desarrollo 200902, Cátedra de Cooperación Internacional y con Iberoamérica (COIBA), Universidad de Cantabria.
- Isabel Ruiz & Carlos Vargas-Silva, 2009.
"Another Consequence of the Economic Crisis: A Decrease in Migrants’ Remittances,"
0907, Sam Houston State University, Department of Economics and International Business.
- Isabel Ruiz & Carlos Vargas-Silva, 2010. "Another consequence of the economic crisis: a decrease in migrants' remittances," Applied Financial Economics, Taylor & Francis Journals, vol. 20(1-2), pages 171-182.
- Isabel Ruiz & Carlos Vargas-Silva, 2012. "Exploring the causes of the slowdown in remittances to Mexico," Empirical Economics, Springer, vol. 42(3), pages 745-766, June.
- George Mavrotas & Syed Mansoob Murshed & Sebastian Torres, 2011.
"Natural Resource Dependence and Economic Performance in the 1970–2000 Period,"
Review of Development Economics,
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- George Mavrotas & Syed Mansoob Murshed & Sebastian Torres, 2012. "Natural Resource Dependence and Economic Performance in the 1970-2000 Period," OxCarre Working Papers 081, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
- Garcia-Jimenez, Carlos I. & Mishra, Ashok K., 2010. "The Effects of Public Debt on Labor Demand in the United States," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56361, Southern Agricultural Economics Association.
- Serdar Sayan & B. Onur Tas & Yasemin Yalta, 2010. "Cyclical Behavior of Mexican Remittances over the Mexican and the US Business Cycles," Working Papers 1008, TOBB University of Economics and Technology, Department of Economics.
- Michael A. Clemens, 2011. "Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 83-106, Summer.
- Bayangos, Veronica & Jansen, Karel, 2011. "Remittances and Competitiveness: The Case of the Philippines," World Development, Elsevier, vol. 39(10), pages 1834-1846.
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