A Kaleckian model for understanding and responding to the economic policy challenges of remittances

In this work we construct a Kaleckian model for analyzing the impacts of remittances upon economies of receiving countries. The arrival of remittances has two harmful effects: contraction of income, and the so-called Dutch Disease (DD). We use our model to formulate an economic policy with two objective variables and two instrumental variables, to solve or attenuate these problems.