Pattern seen in governments’ currency policies
Every day around the world, vast numbers of migrants wire money back to their home countries, trying to support families and friends in need. In fact, these transfers of money — “remittances” — constitute a significant part of the global economy. Consider that in El Salvador, Haiti, Honduras, and Jordan, the level of remittances exceeds 15 percent of each nation’s gross domestic product (GDP), the value of all goods and services produced annually. In 2004, 42 countries in the developing world received remittances greater than 5 percent of GDP. Or try this for perspective. There are about 31,000 McDonald’s franchises around the world, often serving as symbols of unstoppable globalization. But there are 410,000 worldwide offices of the money-transfer firm Western Union, notes David Andrew Singer, an assistant professor of political science at MIT, and remittances are a rapidly growing phenomenon. Money transfers to developing countries totaled $31 billion in...