Caribbean countries should use fiscal policy to fight exchange market pressure
Fiscal policy is "the only tool that will contain aggregate demand" in the Caribbean countries and fight excessive exchange market pressure, according to a report published by the Central Bank of Barbados.
The 200-page long document analyses fiscal sustainability and debt in the small open economies of the Caribbean. The study was led by DeLisle Worrell, governor of the Central Bank of Barbados, and authored by several economists drawn from the central banks of Belize, Aruba, Suriname, Jamaica
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