TY - BOOK ID - 136142247 TI - Remittances and the Real Exchange Rate AU - Bussolo, Maurizio AU - Lopez, Humberto AU - Molina, Luis PY - 2007 PB - Washington, D.C., The World Bank, DB - UniCat KW - Capital Inflow KW - Consumption KW - Currencies and Exchange Rates KW - Debt Markets KW - Demand KW - Domestic Economy KW - Dutch Disease KW - Economic Stabilization KW - Economic Theory and Research KW - Economies KW - Economy KW - Emerging Markets KW - External Financing KW - Finance and Financial Sector Development KW - Growth Rates KW - International Markets KW - Loss of Competitiveness KW - Macroeconomic Management KW - Macroeconomic Stability KW - Macroeconomics and Economic Growth KW - Natural Resources KW - Open Economy KW - Private Sector Development KW - Real Exchange Rate KW - Real Exchange Rate Appreciation KW - Remittance KW - Remittances KW - Risk KW - Welfare UR - https://www.unicat.be/uniCat?func=search&query=sysid:136142247 AB - Existing empirical evidence indicates that remittances have a positive impact on a good number of development indicators of recipient countries. Yet when flows are too large relative to the size of the recipient economies, as those observed in a number of Latin American countries, they may also bring a number of undesired problems. Among those probably the most feared in this context is the Dutch Disease. This paper explores the empirical evidence regarding the impact of remittances on the real exchange rate. The findings suggest that remittances indeed appear to lead to a significant real exchange rate appreciation. The paper also explores policy options that may somewhat offset the observed effect. ER -