Cover IMF Working Papers
Fiscal Sustainability in Remittance-Dependent Economies
Author: Mr. Ralph Chami, Mr. Yasser Abdih, Mr. Amine Mati, and Michael T. Gapen
Series:
IMF Working Papers
Volume/Issue:
Volume 2009: Issue 190
Language:
English
Publication Date:
01 Sep 2009
DOI:
https://doi.org/10.5089/9781451873375.001
ISBN:
9781451873375
ISSN:
1018-5941
Pages:
25
Keywords:
WP; remittance; debt-to-GDP; GDP; debt-to-GDP ratio
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund