The Fed, Remittances, and Economic Cycles: A Cross-Border Perspective

Das Apu Chandra ()
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Das Apu Chandra: Shahjalal University of Science and Technology, Sylhet, Bangladesh, Postal: Undergraduate Student, Department of Economics, Shahjalal University of Science and Technology, Sylhet, Bangladesh.

Journal of Economic Integration, 2025, vol. 40, issue 2, 419-436

Abstract: 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.

Keywords: Migrant Remittances; Migration Business cycle; Monetary policy; External effects (search for similar items in EconPapers)
JEL-codes: E52 F24 F41 O11 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0950

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