Author Affiliation, Ana.
Mona School of Business
Rehabilitating Jamaica's financial sector:goodbye financial crash hello currency-financial crash?
Social and Economic Studies
Date of Publication
Jamaica experienced a systematic financial sector crisis in 1997.The rehabilation project is threatened by macroeconomic imbalances; not macroeconomic market failures. Persistent weak macro-fundamentals and fragile real sector balance sheets simultaneously shrink the pool and vulnerability to a second wave of bankruptcies and unemployment. Prospective public illiquidity is a source of short-run instability and elevated market risk. Uncoordinated private liquidation of public debt could result in a currency-financial crisis. Crisis risks are sufficiently high to warrant defensive positions and 'continuous' portfolio monitoring by the private sector. Bold preemptive action by policy-makers is required to lower crisis risks.....