THE IMPACT of FINANCIAL SERVICES GLOBALIZATION UPON the CARIBBEAN COMMON MARKET
In: Review of policy research, Band 19, Heft 1, S. 107-127
ISSN: 1541-1338
ABSTRACTThis article tests three hypotheses concerning the policy effects of foreign exchange market liberalization and exchange controls in the three Caribbean Common Market countries of Jamaica, Trinidad & Tobago, and Barbados during the 1990s. It concludes that these cases do not show either monetary or fiscal policy to be particularly effective, when foreign exchange markets are liberalized before a functional bank regulatory system is put in place. These cases also imply that given the challenges posed by financial services globalization, the need for informed judgment by governments regarding the pace and scope of financial sector liberalization will remain critical, particularly within small developing countries.
