Hayek seems to have had very little doubt but that private enterprise, operating in a largely unregulated environment, would deliver a monetary system that is stable, safe and efficient. However, I remain rather sceptical whether the private sector can cope with all the externalities involved in the provision of a smoothly working monetary and financial system.
So, given the global prospects I want to talk to you about three things: •  First, outline some key developments in Trinidad and Tobago’s economy over the past six months or so;  •  Second, explain the monetary policy actions of the Central Bank in the context of evolving economic conditions; and  •  Third, conclude with some thoughts on the short-term economic outlook for Trinidad and Tobago.