Post by lairezippert on Sept 29, 2009 22:06:45 GMT 4
Fiscal Sustainability in Remittance-Dependent Economies
Michael Gapen
International Monetary Fund (IMF) - International Capital Markets Department
Yasser Abdih
International Monetary Fund (IMF)
Amine Mati
International Monetary Fund (IMF)
Ralph Chami
International Monetary Fund (IMF)
September 2009
IMF Working Paper No. 09/190
Abstract:
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.
papers.ssrn.com/sol3/Delivery.cfm/wp09190.pdf?abstractid=1475520&mirid=1
Michael Gapen
International Monetary Fund (IMF) - International Capital Markets Department
Yasser Abdih
International Monetary Fund (IMF)
Amine Mati
International Monetary Fund (IMF)
Ralph Chami
International Monetary Fund (IMF)
September 2009
IMF Working Paper No. 09/190
Abstract:
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.
papers.ssrn.com/sol3/Delivery.cfm/wp09190.pdf?abstractid=1475520&mirid=1