Monetary regimes and inflation in 12 Caribbean economies

Abstract

Purpose

There is a growing consensus that monetary policy occupies a primary position in macroeconomic management. This study aims to analyse how monetary policy performed in a sample of Caribbean countries.

Design/methodology/approach

The paper uses a univariate analysis on the price variables to conduct a comparative analysis on inflation and to examine the background to the relationship between mean inflation and inflation persistence.

Findings

In a descriptive statistics analysis, framed within the discretion versus rules debate, the paper argues that there is not only an association between monetary policy, inflation and economic performance but also that the institutional contexts provided varying degrees of constraints on policy.

Originality/value

The paper provides further confirmation that monetary policy occupies a primary position in macroeconomic management.

Citation

Boyd, D. and Smith, R. (2006), "Monetary regimes and inflation in 12 Caribbean economies", Journal of Economic Studies, Vol. 33 No. 2, pp. 96-107. https://doi.org/10.1108/01443580610666055