Higher inflation results in greater remittances to Pakistan – paper
Workers send more money to make up for erosion of real incomes in their home country
Remittances to Pakistan tend to increase during periods of high inflation, economists at the Asian Development Bank (ADB) have found.
The ADB’s working paper says high inflation in Pakistan has prompted migrants to send more money to compensate for the declining real incomes of their households. It says another possible reason why migrants send more money during inflationary periods is to take advantage of higher interest rates for savings and investments.
However, these patterns vary slightly
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