View
Publication Type
Conference Proceedings
UWI Author(s)
Author, Analytic
Ghartey, Edward
Author Role
n/a
Author Affiliation
Department of Economics
Paper/Section Title
Is the current foreign exchange regime in Jamaica optimal
Medium Designator
n/a
Connective Phrase
n/a
Editor/Compiler
n/a
Editor/Compiler Role
n/a
Proceedings Title
XXXII Annual monetary studies conference
Date of Meeting
October 30 - November 02, 2000
Place of Meeting
Kingston, Jamaica
Place of Publication
n/a
Publisher Name
n/a
Date of Publication
n/a
Date of Copyright
n/a
Volume ID
n/a
Location in Work
n/a
Extent of Work
n/a
Packaging Method
n/a
Series Editor
n/a
Series Editor Role
n/a
Series Title
n/a
Series Volume ID
n/a
Location/URL
n/a
ISBN
n/a
Notes
n/a
Abstract
Employs the exchange market pressure model to identify an appropriate foreign exchange regime for Jamaica, a small open economy, over the course of the different political regimes. The emperical findings suggest that increase in world prices and domestic credit results in the appreciation of the Jamiacan dollar, and inflow of international reserves, while increases in national income and inflation result in depreciation of the Jamaican dollar, and outflow of international reserves. The estimates of the exchange market pressure indicate that it is indeed sensitive to its composition, as monetary authorities cannot determine the desired exchange rate target with it. This means that in Jamaica, the monetary authorities do discriminate between international reserves and exchange rate in absorbing market pressure, and they do it by accumulating international reserves, features which are akin to optimal fixed exchange rate, as domestic residents do consider domestic assets to be different.....
read more
Keywords