Migrants who move to a new country for a better life typically send money home to their families.Countries like Mexico rely on this money, called remittances.Last year remittances to Mexico totaled about $39 billion, equivalent to about 3% of Mexico's GDP.What happens when Covid shuts down the economy and the migrants lose their jobs?Clearly if the migrant doesn't have a job, the payments he's sending to his family stop. Check out the attached report from CNN to get a feel for how that affects families personally.What are some ways that might affect the Mexican economy?Remember, the remittances are small dollar amounts sent directly to families to help pay living expenses.When that money stops, how does it affect the family's purchasing capacity?How does that then affect the merchants the family had been doing business with? How does that then affect aggregate demand and even unemployment?

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Answer The halt in remittances due to migrants losing their jobs amid the COVID19 pandemic can have ... View the full answer