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Economic Resilience with An Exchange Rate Peg: The Barbados Experience, 1985-2000

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  • Roland Craigwell
  • Kevin Greenidge
  • Harold Codrington
  • Mr. Rupert D Worrell

Abstract

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.

Suggested Citation

  • Roland Craigwell & Kevin Greenidge & Harold Codrington & Mr. Rupert D Worrell, 2003. "Economic Resilience with An Exchange Rate Peg: The Barbados Experience, 1985-2000," IMF Working Papers 2003/168, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2003/168
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    References listed on IDEAS

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    Cited by:

    1. Khemraj, Tarron & Pasha, Sukrishnalall, 2011. "Monetary sterilization and dual nominal anchors: some Caribbean examples," MPRA Paper 34503, University Library of Munich, Germany.
    2. Eduardo Wiesner, 2008. "The Political Economy of Macroeconomic Policy Reform in Latin America," Books, Edward Elgar Publishing, number 12913.
    3. Keyra Primus, 2016. "The Effectiveness of Monetary Policy in Small Open Economies: An Empirical Investigation," IMF Working Papers 2016/189, International Monetary Fund.
    4. Winston Moore & Adrian Glean, 2016. "Foreign exchange reserve adequacy and exogenous shocks," Applied Economics, Taylor & Francis Journals, vol. 48(6), pages 490-501, February.
    5. Primus, Keyra, 2018. "The effectiveness of monetary policy in small open economies," Journal of Policy Modeling, Elsevier, vol. 40(5), pages 903-933.
    6. Winston Moore & Marlon Williams, 2008. "Evidence on the sectoral monetary transmission process under a fixed exchange rate regime," International Economic Journal, Taylor & Francis Journals, vol. 22(3), pages 387-398.

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