{ "title": "Eastern Caribbean Currency Union: Selected Issues", "publication": "IMF Staff Country Reports, March 5, 2020", "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2020/03/05/eastern-caribbean-currency-union-selected-issues-49249", "canonical": "https://www.imf.org/en/publications/cr/issues/2020/03/05/eastern-caribbean-currency-union-selected-issues-49249", "overlayPath": "/en/publications/cr/issues/2020/03/05/eastern-caribbean-currency-union-selected-issues-49249/index.md", "summary": "This Selected Issues paper focuses on the need and importance of fiscal integration for the Eastern Caribbean Currency Union (ECCU). The continued success of the currency union can be solidified by greater fiscal policy integration.", "sections": [ { "heading": "Summary", "content": "- Focuses on the need and importance of fiscal integration for the Eastern Caribbean Currency Union (ECCU).\n- Argues that the continued success of the currency union can be solidified by greater fiscal policy integration.\n- Notes that against the growing intensity of external shocks, country-level fiscal policies remain the most important policy lever.\n- Posits that regional fiscal policy coordination could usefully supplement national policies in dealing with adverse shocks and potentially create fiscal and policy space along several dimensions.\n- Observes that internationally, fiscal integration takes many forms depending on the interconnectedness of member economies and their willingness to give up fiscal autonomy.\n- Concludes there is scope for tangibly improving tax incentives and rebalancing them toward those that are more effective, while using higher revenues to attract investment also through better infrastructure.\n- States that regional coordination could significantly support and accelerate those processes." }, { "heading": "Key findings and analysis", "content": "- External shocks to the ECCU are growing in intensity, increasing the importance of coordinated fiscal responses.\n- Country-level fiscal policy remains the primary policy lever, but regional fiscal policy coordination could supplement national policies.\n- Fiscal integration can create fiscal and policy space across multiple dimensions.\n- There is scope to improve tax incentives and rebalance them toward more effective incentive structures.\n- Higher revenues could be used to attract investment, including through better infrastructure.\n- Regional coordination is highlighted as a mechanism to support and accelerate tax and investment reforms." }, { "heading": "Policy recommendations and implications", "content": "- Pursue greater fiscal policy integration within the ECCU to solidify the currency union’s resilience.\n- Use regional fiscal policy coordination to supplement national fiscal measures when responding to adverse external shocks.\n- Rebalance and improve tax incentives, prioritizing those that are demonstrably more effective.\n- Channel higher revenues toward measures that attract investment, including infrastructure improvements.\n- Recognize that the form and depth of fiscal integration will depend on member countries’ interconnectedness and willingness to cede fiscal autonomy." }, { "heading": "Publication and metadata", "content": "- Publication title: Eastern Caribbean Currency Union: Selected Issues\n- Publication date: March 5, 2020\n- Pages: 53\n- Volume: 2020\n- Issue: 071\n- Series: Country Report No. 2020/071\n- DOI: https://doi.org/10.5089/9781513536262.002\n- Stock No: 1ECCEA2020002\n- ISBN: 9781513536262\n- ISSN: 1934-7685\n- Subjects: Central Bank digital currencies, Digital currencies, Fiscal policy, Public investment spending, Tax incentives\n- Keywords: CR, deposit, digital currency, ECCU country, ISCR, transaction\n\nInternational Monetary Fund. Western Hemisphere Dept. \"Eastern Caribbean Currency Union: Selected Issues\", IMF Staff Country Reports 2020, 071 (2020).\n\n---\n\n Content in this bundle\n\n- Eastern Caribbean Currency Union: Selected Issues; IMF Country Report No. 20/71; January 13, 2020\n - Eastern Caribbean Currency Union: Selected Issues; IMF Country Report No. 20/71; January 13, 2020 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Eastern Caribbean Currency Union: Selected Issues; IMF Country Report No. 20/71; January 13, 2020 (PDF){rel=\"external\" type=\"application/pdf\"}" } ], "bullets": [ "[Markdown version](/en/publications/cr/issues/2020/03/05/eastern-caribbean-currency-union-selected-issues-49249/index.md)", "[Structured JSON version](/en/publications/cr/issues/2020/03/05/eastern-caribbean-currency-union-selected-issues-49249/index.json)", "[Bundle manifest](/en/publications/cr/issues/2020/03/05/eastern-caribbean-currency-union-selected-issues-49249/bundle-manifest.json)", "Published: March 5, 2020", "Series: IMF Staff Country Reports", "DOI: https://doi.org/10.5089/9781513536262.002", "Focuses on the need and importance of fiscal integration for the Eastern Caribbean Currency Union (ECCU).", "Argues that the continued success of the currency union can be solidified by greater fiscal policy integration.", "Notes that against the growing intensity of external shocks, country-level fiscal policies remain the most important policy lever.", "Posits that regional fiscal policy coordination could usefully supplement national policies in dealing with adverse shocks and potentially create fiscal and policy space along several dimensions.", "Observes that internationally, fiscal integration takes many forms depending on the interconnectedness of member economies and their willingness to give up fiscal autonomy.", "Concludes there is scope for tangibly improving tax incentives and rebalancing them toward those that are more effective, while using higher revenues to attract investment also through better infrastructure.", "States that regional coordination could significantly support and accelerate those processes.", "External shocks to the ECCU are growing in intensity, increasing the importance of coordinated fiscal responses.", "Country-level fiscal policy remains the primary policy lever, but regional fiscal policy coordination could supplement national policies.", "Fiscal integration can create fiscal and policy space across multiple dimensions.", "There is scope to improve tax incentives and rebalance them toward more effective incentive structures.", "Higher revenues could be used to attract investment, including through better infrastructure.", "Regional coordination is highlighted as a mechanism to support and accelerate tax and investment reforms.", "Pursue greater fiscal policy integration within the ECCU to solidify the currency union’s resilience.", "Use regional fiscal policy coordination to supplement national fiscal measures when responding to adverse external shocks.", "Rebalance and improve tax incentives, prioritizing those that are demonstrably more effective.", "Channel higher revenues toward measures that attract investment, including infrastructure improvements.", "Recognize that the form and depth of fiscal integration will depend on member countries’ interconnectedness and willingness to cede fiscal autonomy.", "Publication title: Eastern Caribbean Currency Union: Selected Issues", "Publication date: March 5, 2020", "Pages: 53", "Volume: 2020", "Issue: 071", "Series: Country Report No. 2020/071", "DOI: https://doi.org/10.5089/9781513536262.002", "Stock No: 1ECCEA2020002", "ISBN: 9781513536262", "ISSN: 1934-7685", "Subjects: Central Bank digital currencies, Digital currencies, Fiscal policy, Public investment spending, Tax incentives", "Keywords: CR, deposit, digital currency, ECCU country, ISCR, transaction", "**Eastern Caribbean Currency Union: Selected Issues; IMF Country Report No. 20/71; January 13, 2020**" ], "related": [ { "title": "Eastern Caribbean Currency Union: Selected Issues; IMF Country Report No. 20/71; January 13, 2020", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/publications/cr/2020/english/1eccea2020002.pdf", "summary": { "path": "/-/media/files/publications/cr/2020/english/1eccea2020002.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/publications/cr/2020/english/1eccea2020002.pdf", "mime": "application/pdf" } } ], "alternates": { "markdown": "/en/publications/cr/issues/2020/03/05/eastern-caribbean-currency-union-selected-issues-49249/index.md", "json": "/en/publications/cr/issues/2020/03/05/eastern-caribbean-currency-union-selected-issues-49249/index.json", "bundleManifest": "/en/publications/cr/issues/2020/03/05/eastern-caribbean-currency-union-selected-issues-49249/bundle-manifest.json" }, "generatedAtUtc": "2026-09-12T17:35:45.396Z" }