Central Bank of Barbados

Competitiveness in the Caribbean and Central America

2012: This study includes measures of price and non-price competitiveness in the Caribbean. Results suggest that most countries have become more price competitive, while the smaller Caribbean islands have increased their advantage in the exports of goods and services and international finance. Preliminary estimates also provide some evidence that aggregate world demand, local investment and price competitiveness improve the growth of production in the tradable sector.

Stabilisation Policy with a Fixed Exchange Rate

Economic Review, Volume XXXVIII, Issue 1, June 2012: Pages 57-66. This paper describes how fiscal policy is used in Barbados to manage the demand for foreign exchange and ensure that the Central Bank is always stocked with adequate foreign exchange reserves to supply the needs of the interbank market. This enables the Central Bank to maintain an unchanged exchange rate through intervention on the interbank market. Sustaining the peg in this way lends credibility to Government economic policy and provides strong incentives to save and invest in the local economy.