Floating exchange rates cut inflation in Caribbean – IMF paper
Floating exchange rate regimes have led to lower inflation in Caribbean countries, a paper published by the International Monetary Fund finds.
Serhan Cevik and Tianle Zhu examine the relationship between floating exchange regimes and inflation for 15 Caribbean countries between 1980 and 2017.
Of the countries examined, nine have pegged exchange rates and are thus categorised, for the sake of the study, as those without monetary autonomy.
The authors find floating exchange rate regimes have a
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