Take the simple example of a precipitous decline in oil prices. In the case of Trinidad and Tobago, this could lead to a decline in growth and employment and perhaps call for a lowering of interest rates to boost domestic demand.
However, lower oil prices will benefit the other Caribbean countries and  BIS Review 37/2006  3  could spur faster growth and employment creation, a situation that may call for an increase in interest rates – thus the dilemma for the regional central bank.