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A Kaleckian model for understanding and responding to the economic policy challenges of remittances

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  • Luis Alberto Alonso Gonzalez
  • Bruno Sovilla

Abstract

In this work we construct a Kaleckian model for analyzing the impacts of remittances upon economies of receiving countries. The arrival of remittances has two harmful effects: contraction of income, and the so-called Dutch Disease (DD). We use our model to formulate an economic policy with two objective variables and two instrumental variables, to solve or attenuate these problems.

Suggested Citation

  • Luis Alberto Alonso Gonzalez & Bruno Sovilla, 2014. "A Kaleckian model for understanding and responding to the economic policy challenges of remittances," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(6), pages 832-848, September.
    • Handle: RePEc:taf:irapec:v:28:y:2014:i:6:p:832-848
    DOI: 10.1080/02692171.2014.933784
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    1. Frenkel, Roberto, 2007. "The sustainability of monetary sterilization policies," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
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