| The Fed, Remittances, and Economic Cycles: A Cross-Border Perspective |
Apu Chandra Das, |
| Shahjalal University of Science and Technology, Sylhet, Bangladesh |
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Corresponding Author:
Apu Chandra Das ,Email: apuchandra57@student.sust.edu |
| Copyright ©2025 The Journal of Economic Integration |
| ABSTRACT |
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The flow of remittances is shaped by the broader macroeconomic landscape of both the sending and receiving nations. This paper delves into the overlooked impact of U.S. monetary policy on remittance transfers to Latin America and the Caribbean. Employing panel local projections across eight recipient countries, we uncover a pronounced and statistically significant decline in remittance inflows following unexpected shifts in U.S. monetary conditions. Our findings remain consistent across different sample periods and when accounting for additional factors. This study, therefore, introduces a remittance-based transmission channel through which Federal Reserve policies reverberate across global economic cycles.
JEL Classification
F24: Remittances
F41: Open Economy Macroeconomics
E52: Monetary Policy
O11: Macroeconomic Analyses of Economic Development |
| Keywords:
Migrant Remittances | Migration | Business cycle | Monetary policy | External effects
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