IMF Working Papers

Financial Sector Reform in Jamaica During 1985-1992, Possible Lessons for the Caribbean

By Dewitt D Marston

September 1, 1995

Preview Citation

Format: Chicago

Dewitt D Marston. Financial Sector Reform in Jamaica During 1985-1992, Possible Lessons for the Caribbean, (USA: International Monetary Fund, 1995) accessed November 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper reviews the Jamaican experience with indirect instruments and contrasts this with the currency board type arrangements of the common currency area governed by the Eastern Caribbean Central Bank (ECCB). Reforms in Jamaica improved intermediation and banking efficiency, but a weak fiscal position and interest rate caps undermined the effectiveness of indirect instruments in attaining monetary control. The apparent stability amongst members of the currency union may mask fiscal pressures. In most Caribbean countries, problems of quasi-fiscal pressures on money supply, and disintermediation due to some regulation, are evident. Resolving these issues are necessary to facilitate the reforms being pursued.

Subject: Banking, Central banks, Credit ceilings, Currencies, Foreign exchange, Monetary policy, Money, Open market operations, Reserve requirements

Keywords: Administered interest rates, BoJ certificate of deposit, Caribbean, Central bank, Certificate of deposit, Credit ceilings, Currencies, Currency-board type arrangement, Exchange arrangement, Exchange market liberalization, Floor deposit rate, Foreign exchange, Interbank system, Interest rate structure, Liquid asset ratio, Market development, Monetary management, Open market operations, Preferential interest rate scheme, Reserve requirements, Secondary market, WP

Publication Details

  • Pages:

    32

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1995/090

  • Stock No:

    WPIEA0901995

  • ISBN:

    9781451851366

  • ISSN:

    1018-5941

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