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A Currency Union for the Caribbean
  • Language: en
  • Pages: 35

A Currency Union for the Caribbean

The experiences of Caribbean Economic Community countries show that exchange rate depreciation in these countries is inflationary, and that, while changes in the relative prices of tradables may affect exports, tourism, and imports, nominal exchange rate changes have no predictable effect on those relative prices. Under these circumstances, economic literature indicates that a fixed exchange rate regime is optimal, and Caribbean countries with (quasi-) currency boards have been successful in maintaining durable exchange rate pegs. Commitment to a currency board is a potentially vital step in achieving a currency union for the Caribbean.

Economic Resilience with An Exchange Rate Peg
  • Language: en
  • Pages: 24

Economic Resilience with An Exchange Rate Peg

This paper discusses the institutional arrangements for exchange rate targeting in Barbados and the critical role they played in the policy response to its balance of payments crisis of 1991-92. The framework featured ongoing cooperation between the central bank and the Ministry of Finance, and the use of a forecast model which highlighted the size of fiscal adjustment needed to secure foreign reserves adequate to maintain the exchange rate peg.

A Small Foreign Exchange Market with a Long-Term Peg
  • Language: en
  • Pages: 20

A Small Foreign Exchange Market with a Long-Term Peg

This paper is a first analysis of daily transactions in the foreign exchange market of Barbados, a small open economy that has had an unchanged peg to the U.S. dollar for over 30 years. As a result of the credibility of the peg, we expect that capital flows will respond to differentials between U.S. and comparable Barbadian interest rates and that this will result in uncovered interest parity, when allowance is made for market frictions and large discrete events. The results are consistent with this hypothesis about the motivation for foreign exchange transactions.

Journal
  • Language: en
  • Pages: 902

Journal

  • Type: Book
  • -
  • Published: 1813
  • -
  • Publisher: Unknown

None

The Lancet
  • Language: en
  • Pages: 1914

The Lancet

  • Type: Book
  • -
  • Published: 1906
  • -
  • Publisher: Unknown

None

Commercial Broadcasting Incorporating Broadcasting Business
  • Language: en
  • Pages: 718

Commercial Broadcasting Incorporating Broadcasting Business

  • Type: Book
  • -
  • Published: 1941
  • -
  • Publisher: Unknown

None

The Law Times
  • Language: en
  • Pages: 1282

The Law Times

  • Categories: Law
  • Type: Book
  • -
  • Published: 1895
  • -
  • Publisher: Unknown

None

Journal of the Royal Society of Arts
  • Language: en
  • Pages: 928
Journal of the Society of Arts
  • Language: en
  • Pages: 944

Journal of the Society of Arts

  • Type: Book
  • -
  • Published: 1869
  • -
  • Publisher: Unknown

None

Journal
  • Language: en
  • Pages: 942

Journal

  • Type: Book
  • -
  • Published: 1869
  • -
  • Publisher: Unknown

None