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The Path to Sustainable Development through the Splitting of the Foreign Exchange Reserves

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  • Andrew Lewis

Abstract

This paper presents a theoretical equation that when used shows the impact that the foreign exchange reserves have on the overall health of an economy such as the case with Jamaica. The equation also has variables that demonstrate this case assuming no ¡°official and unofficial¡± or ¡°formal and informal¡± sectors. If there is a definitive split between both sectors so that the unofficial economy can make an impact on the formal economy, the splitting of the reserves can provide support for the ¡°informal economy¡± as this sector can catalyze the formal economy potentially providing higher economic growth. It is shown through statistical data that the correlation can have an impact if the economy is split in two to show the positive relationship this can have on the Jamaican economy as a whole.

Suggested Citation

  • Andrew Lewis, 2016. "The Path to Sustainable Development through the Splitting of the Foreign Exchange Reserves," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 6(2), pages 97-102, June.
    • Handle: RePEc:ibn:jmsjnl:v:6:y:2016:i:2:p:97-102
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    References listed on IDEAS

    as
    1. Mr. Dewitt D Marston, 1995. "Financial Sector Reform in Jamaica During 1985-1992, Possible Lessons for the Caribbean," IMF Working Papers 1995/090, International Monetary Fund.
    2. Mr. Desiree Cherebin & Mr. Rupert D Worrell & Ms. Tracy Polius, 2001. "Financial System Soundness in the Caribbean: An Initial Assessment," IMF Working Papers 2001/123, International Monetary Fund.
    3. Mr. Rodolphe Blavy, 2006. "Public Debt and Productivity: The Difficult Quest for Growth in Jamaica," IMF Working Papers 2006/235, International Monetary Fund.
    4. Ms. Anja Baum & Mr. Marcos Poplawski Ribeiro & Miss Anke Weber, 2012. "Fiscal Multipliers and the State of the Economy," IMF Working Papers 2012/286, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    informal sector; exchange rate; economic growth; economic development; Jamaica; fiscal multiplier; IMF; Central Bank; Bank of Jamaica; Shadow Economy; GDP; GDP PPP; GDP Nominal; economics equation; growth rate; Rafael Correa; budget deficit; developing economy; Jamaican dollar; American dollar;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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