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

Roland Craigwell, Kevin Greenidge, Harold Codrington and Rupert Worrell

No 2003/168, IMF Working Papers from International Monetary Fund

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.

Keywords: WP; balance of payments; central bank; fiscal policy; monetary policy; Stabilization policy; Exchange rate; Caribbean; Barbados exchange rate anchor; cash flow; adjustment program; rate of return; Barbados economy; price effect; Barbados' balance of payments crisis; central bank of Barbados; Barbados policy framework; derived demand; Barbados experience; Phillips curve; International reserves; Inflation; Fiscal consolidation (search for similar items in EconPapers)
Pages: 24
Date: 2003-08-01
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Citations: View citations in EconPapers (6)

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