Caribbean Approaches to Economic Stabilization
IMF Working Papers, March 1, 2000
Source details
- Canonical URL
- Caribbean Approaches to Economic Stabilization
Other formats
Bibliographic details
- Authors: Alvin Hilaire
- Published: March 1, 2000
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451849455.001
Background
- Author: Alvin Hilaire
- Date: March 1, 2000
- Context: In the late 1980s Barbados, Guyana, Jamaica, and Trinidad and Tobago faced severe economic difficulties and adopted market-based stabilization strategies.
Policy measures implemented
- Fiscal contraction
- Trade liberalization
- Multilateral support loans
- Later tax reforms
- Financial sector reforms
- Varied exchange rate, monetary, and public sector wage policies across countries
Key findings
- Choice of exchange rate regime was not as fundamental to successful stabilization as fiscal action.
- Fiscal action should be complemented by, but not unduly rely on, monetary policy.
- Policies to reduce debt and to diversify economic bases help lessen vulnerabilities to future economic shocks.
- The countries’ strategies were market-based and combined multiple reform elements (fiscal, trade, tax, financial sector).
Subject and keywords
- Subject: Banking, Consumption taxes, Economic sectors, Exchange restrictions, External debt, Foreign exchange, Imports, International trade, Public sector, Taxes
- Keywords: balance of payments, Barbados, Caribbean, company, Consumption taxes, country, exchange rate, Exchange restrictions, government, government treasury bills, Guyana, Imports, Jamaica, net spending, Public sector, stabilization, state enterprise, structural adjustment, Trinidad and Tobago, Trinidad and Tobago government, WP
Content in this bundle
- Caribbean Approaches to Economic Stabilization - WP/00/73