Dual nominal anchors in the Caribbean

Tarron Khemraj, Sukrishnalall Pasha
  • Journal of Economic Studies, August 2012, Emerald
  • DOI: 10.1108/01443581211255639

What is it about?

Why are Caribbean countries able to have independent monetary policy, open capital accounts and exchange rate targeting? This paper argues that commercial banks determine the process by marking up interest rate above the benchmark. This process takes place in the primary markets, thus allowing the central bank to target interest rate using excess liquidity.

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The following have contributed to this page: Professor Tarron Khemraj

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