Since there are elements of open capital account, the maneuverability for RBI in the short-term to monetize government’s deficit is severely circumscribed by the direction and magnitudes of such flows. Keeping these considerations in view, RBI and Government have agreed upon freedom to RBI to determine the extent of monetization of government budget consistent with macro-economic stability.
A special welcome to the IMF contingent, (who we now consider friends in the region – how times have changed). This conference has become a flagship event in the region’s economic conference agenda. Over the forty-two years it has provided a unique opportunity for researchers from within and outside the Caribbean to examine economic and financial issues of critical importance to the region.