A Currency Union for the Caribbean

WPIEA0352003 Image
Price:  $15.00

Author/Editor: DeLisle Worrell
Release Date: © February, 2003
ISBN : 978-1-45184-537-2
Stock #: WPIEA0352003
English
Stock Status: Available

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Description

The experiences of Caribbean Economic Community countries show that exchange rate depreciation in these countries is inflationary, and that, while changes in the relative prices of tradables may affect exports, tourism, and imports, nominal exchange rate changes have no predictable effect on those relative prices. Under these circumstances, economic literature indicates that a fixed exchange rate regime is optimal, and Caribbean countries with (quasi-) currency boards have been successful in maintaining durable exchange rate pegs. Commitment to a currency board is a potentially vital step in achieving a currency union for the Caribbean.

Taxonomy

Economic cooperation , Monetary unions




More publications in this series: Working Papers


More publications by: DeLisle Worrell