Description

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.

Taxonomy

Economic policy , Foreign exchange , Monetary policy

More publications in this series: Working Papers

More publications by: Roland Craigwell ; Kevin Greenidge ; Harold Codrington ; Rupert Worrell