My colleagues Harold Codrington, Roland Craigwell, Kevin Greenidge and I have written about the economic crisis of 1991-92, and how the mechanisms for coordination between the Ministries of Finance and Economic Affairs, and the Central Bank, facilitated effective policy making.
Back then we didn’t have macroprudential policy and, when the shock hit our financial system, we experienced the deepest fall in real estate prices ever seen in our country. We lost around one third of the market value of residential real estate. Unemployment tripled. And GDP contracted by 15 per cent. We experienced one of the deepest economic recessions in the EU.