This thesis examines the macroeconomic impact of remittances in developing economies, using data from 1990 to 2016. Despite poverty-reducing and welfare-enhancing characteristics for recipient households, remittances remain to inhibit macroeconomic policy in developing economies; by producing Dutch Disease effects, by creating an indeterminate effect on long run economic growth, and by reducing the quality of financial institutions. This thesis explores these key issues surrounding remittances along with a overall theme on fiscal policy, financial development and monetary policy. The significant contributions of my thesis are as follows: it provides insight into the effects of remittance inflows on fiscal cyclicality in developing economies; it provides new understanding into the relationship between remittances, financial development and economic growth; it provides a newly constructed measure of the financial development index across the panel dataset; and it shows the effects of remittance inflows on monetary policy by incorporating dynamics. The use of different empirical techniques enables the thesis to investigate the effects of remittances on key macroeconomic aggregates across several different continents. It first uses empirical techniques to examine how remittances affect fiscal policy over the business cycle. The empirical analysis consists of developing countries that are split up into six datasets: Africa, Middle East and North Africa (MENA), Asia, Latin America, Europe and the full dataset which combines the countries from all regions into one dataset. The thesis examines the potential for remittance inflows to influence fiscal policy over the fiscal cycle. The empirical evidence confirms that remittance inflows have a direct impact on the fiscal cycle. Moreover, the full dataset confirms that remittance inflows contribute for fiscal policy to be procyclical over the fiscal cycle. The Remittances-Output gap interaction term shows a positive coefficient which could be explained by the negative ...