Exchange rate depreciation is of limited benefit to small, open economies, says Barbados governor
DeLisle Worrell highlights differences between big and small open economies
Small, open economies are different from large economies in facing a foreign exchange constraint that cannot be alleviated by depreciation of the real exchange rate, Central Bank of Barbados governor DeLisle Worrell said yesterday during a presentation at the Peterson Institute in Washington, DC.
This constraint affects monetary, fiscal and exchange rate policy, as well as fiscal sustainability and debt management and patterns of economic growth, he argued.
"With respect to monetary, fiscal and
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