AUGUST ISSUE OF CENTRAL BANK OF BARBADOS’ ECONOMIC REVIEW FOCUSES ON DOMESTIC FINANCIAL & PUBLIC SECTOR ISSUES
The Central Bank of Barbados just published the August issue of the Economic Review, featuring articles on the local financial and public sectors.
Readers of this publication, available on the Bank’s website, will get a comprehensive picture of the importance of the National Insurance Scheme as a financier to government.
The article titled “A Note on NIS Financing” presents an illustration of how Barbados stacks up against a few developing and developed countries, when it comes to social security schemes investing in government debt.
On the financial side, the issue includes articles on “What Prompts Central Bank Intervention in the Barbados Foreign Exchange Market”. One of the concluding points is that past interventions are quite useful in predicting current interventions, a factor the author attributes to the fact that the imbalances in the FX market tend to persist over a number of days.
The paper on “Stabilisation Policy with a Fixed but Market-Determined Exchange Rate” outlines a framework of using fiscal policy to maintain exchange rate stability. A micro approach to evaluating commercial bank stability under tightening liquidity conditions is the subject of another piece of research in the issue titled “Tracing the Liquidity Effects on Bank Stability in Barbados” and a methodology for forecasting nominal gross domestic product (GDP) is articulated in the article titled, “On the Forecast of Barbados’ Nominal Gross Domestic Product”.
The ER concludes with book reviews on two publications, “The Future of Finance: A New Model for Banking and Investment” and “The Black Swan: The Impact of the Highly Improbable”.
The ER, published twice annually, provides analyses and research of major social economic issues confronting Barbados and reviews topical literature from around the world.