1. Control of the money stock in an open economy: the case of Barbados.
- Subjects
- *
MONEY supply , *FOREIGN exchange , *BALANCE of payments , *ECONOMIC activity , *INTERNATIONAL finance , *MONETARY policy , *CENTRAL banking industry personnel - Abstract
The article presents a speech by Michael Howard of the Central Bank of Barbados during the XV Meeting of Central Bank Governors of the American Continent on April 10-11, 1978. He discusses the case of Barbados and control of the money stock in an open economy, which is normally controlled and determined by the balance of payment, economic activity, and asset preferences. The objective of the paper is to discuss the inability of the Barbadian Central Bank to accurately regulate the money stock due to foreign exchange receipts and the fiscal deficit that are out of its control. The paper also focuses in on the effects that real sector activity have on a central bank.
- Published
- 1978