Description

Recent turbulence in global and Caribbean regional financial markets underscore the importance of reassessing the adequacy of international reserves held by the Eastern Caribbean Central Bank (ECCB). Using the Jeanne (2007) optimization framework, this paper finds that international reserves held by the ECCB are generally adequate for a variety of external current account and capital account shocks. However, the ECCB would be challenged in the event of moderate to severe deposit outflows.

Taxonomy

Economic cooperation , Economic policy , Monetary policy , Monetary unions , Reserves

More publications in this series: Working Papers

More publications by: Wendell A. Samuel ; Emilio Pineda ; Mario Dehesa