IMF Working Papers

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

By Roland Craigwell, Kevin Greenidge, Harold Codrington, Rupert D Worrell

August 1, 2003

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Roland Craigwell, Kevin Greenidge, Harold Codrington, and Rupert D Worrell. Economic Resilience with An Exchange Rate Peg: The Barbados Experience, 1985-2000, (USA: International Monetary Fund, 2003) accessed September 19, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Banking, Central banks, Fiscal consolidation, Fiscal policy, Foreign exchange, Inflation, International reserves, Prices

Keywords: Adjustment program, Balance of payments, Barbados' balance of payments crisis, Barbados economy, Barbados exchange rate anchor, Barbados experience, Barbados policy framework, Caribbean, Cash flow, Central bank, Central bank of Barbados, Derived demand, Exchange rate, Fiscal consolidation, Fiscal policy, Inflation, International reserves, Monetary policy, Phillips curve, Price effect, Rate of return, Stabilization policy, WP

Publication Details

  • Pages:

    24

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2003/168

  • Stock No:

    WPIEA1682003

  • ISBN:

    9781451858280

  • ISSN:

    1018-5941