Eastern Caribbean Currency Union: Selected Issues
Electronic Access:
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Summary:
This paper assesses the evolution of Eastern Caribbean Currency Union (ECCU) real exchange rates over time, and examines whether the region has lost competitiveness. The main finding is that there is little evidence of overvaluation of the Eastern Caribbean (EC) dollar. The relationship summarized above permits the calculation of equilibrium current account balances or norms. The financing of ECCU current account imbalances appears stable. This paper also provides evidence on the distinctive impact that tourism plays in the determination of the real exchange rate in tourism-driven economies.
Series:
Country Report No. 2008/096
Subject:
Asset and liability management Banking crises Corporate income tax Economic sectors Financial crises Foreign exchange Liquidity Real exchange rates Taxes Tourism
Frequency:
Monthly
English
Publication Date:
March 7, 2008
ISBN/ISSN:
9781451811728/1934-7685
Stock No:
1ECCEA2008002
Pages:
102
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