Policy misalignments of the currency board arrangements: Issues and experiences from the caribbean economies

• Dionysios Chionis ^[1]
  1. [1] Democritus University of Thrace

     Democritus University of Thrace

     Dimos Komotini, Grecia

     
• Localización: Applied econometrics and international development, ISSN 1578-4487, Vol. 3, Nº. 2, 2003, págs. 101-114
• Idioma: inglés
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• Resumen

  • Although a Currency Board is a simple monetary arrangement, there is a range of important policy issues that must be addressed by the domestic monetary authorities. If one defines policy misalignment as deviation from such policy rule then such mistakes have been associated with either external deficit or contradictory effects on GDP. This paper seeks to evaluate the exchange rate and interest rate misalignment in six Caribbean economies that have adopted Currency Board Arrangements.