Research Article
The Macroeconomic Consequences of Remittances
Table 2
Steady-state values (gamma given).
| | Remittances | Remittances | Remittances | Remittances | | 0% of GDP | 2% of GDP | 5% of GDP | 10% of GDP |
| Inflation | 1.0450 | 1.0450 | 1.0450 | 1.0450 | Nominal interest rate | 0.0577 | 0.0577 | 0.0577 | 0.0577 | Nom. interest on bonds | 0.0577 | 0.0577 | 0.0577 | 0.0577 | Capital/output ratio | 10.1810 | 10.1810 | 10.1810 | 10.1810 | Investment | 0.3098 | 0.3052 | 0.2989 | 0.2878 | Capital | 12.3922 | 12.2060 | 11.9542 | 11.5137 | Hours worked | 0.2591 | 0.2552 | 0.25 | 0.2407 | Output | 1.2172 | 1.1989 | 1.1742 | 1.1309 | Real wages | 2.8185 | 2.8185 | 2.8185 | 2.8185 | Consumption | 1.0121 | 1.0174 | 1.0246 | 1.0372 | Remittances | 0 | 0.0240 | 0.0564 | 0.1132 | Bonds | 8.6185 | 8.4890 | 8.3138 | 8.0075 | Real money balances | 1.3219 | 1.2996 | 1.2694 | 1.2167 | Real money cash | 1.0576 | 1.0416 | 1.0199 | 0.9820 | Real money deposits | 0.2643 | 0.2580 | 0.2495 | 0.2347 | | 0.3160 | 0.3143 | 0.3122 | 0.3084 | Trade balance | −0.1047 | −0.1031 | −0.1010 | −0.0973 | Utility | 99.8060 | 99.8112 | 99.8182 | 99.8304 |
|
|