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Policy Misalignments of the Currency Board Arrangements: Issues and Experiences from the Caribbean Economies

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  • Chionis, Dionysios

Abstract

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.

Suggested Citation

  • Chionis, Dionysios, 2003. "Policy Misalignments of the Currency Board Arrangements: Issues and Experiences from the Caribbean Economies," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 3(2).
    • Handle: RePEc:eaa:aeinde:v:3:y:2003:i:3_11
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    1. Mccallum, Bennet T., 1988. "Robustness properties of a rule for monetary policy," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 29(1), pages 173-203, January.
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    3. Ms. Anne Marie Gulde & Mr. Juha Kähkönen & Mr. Peter M Keller, 2000. "Pros and Cons of Currency Board Arrangements in the Lead-Up to EU Accession and Participation in the Euro Zone," IMF Policy Discussion Papers 2000/001, International Monetary Fund.
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    More about this item

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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