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Policy Misalignments of the Currency Board Arrangements: Issues and Experiences from the Caribbean Economies

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  • Chionis, Dionysios

Abstract

Although a Currency Board is a simple monetary arrangement, there is a range of important policy issues that must be addressed by the domestic monetary authorities. If one defines policy misalignment as deviation from such policy rule then such mistakes have been associated with either external deficit or contradictory effects on GDP. This paper seeks to evaluate the exchange rate and interest rate misalignment in six Caribbean economies that have adopted Currency Board Arrangements.

Suggested Citation

  • Chionis, Dionysios, 2003. "Policy Misalignments of the Currency Board Arrangements: Issues and Experiences from the Caribbean Economies," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 3(2).
    • Handle: RePEc:eaa:aeinde:v:3:y:2003:i:3_11
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    References listed on IDEAS

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    1. Mr. Atish R. Ghosh, 1998. "Currency Boards: The Ultimate Fix?," IMF Working Papers 1998/008, International Monetary Fund.
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    3. Mr. Charles Enoch & Mr. Tomás J. T. Baliño, 1997. "Currency Board Arrangements: Issues and Experiences," IMF Occasional Papers 1997/005, International Monetary Fund.
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    More about this item

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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