1.

Record Nr.

UNINA9910825680503321

Autore

Worrell DeLisle

Titolo

A small foreign exchange market with a long-term peg : Barbados / / prepared by DeLisle Worrell, Roland Craigwell, and Travis Mitchell

Pubbl/distr/stampa

[Washington, D.C.], : International Monetary Fund, IMF Institute, 2006

ISBN

1-4623-2356-1

1-4527-9251-8

1-283-51298-X

1-4519-0958-6

9786613825438

Edizione

[1st ed.]

Descrizione fisica

1 online resource (20 p.)

Collana

IMF working paper ; ; WP/06/245

Altri autori (Persone)

CraigwellRoland

MitchellTravis

Soggetti

Foreign exchange market - Barbados

Foreign exchange rates - Barbados

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

"October 2006."

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

""Contents""; ""I. INTRODUCTION""; ""II. THE INSTITUTIONAL FRAMEWORK""; ""III. THEORETICAL CONSIDERATIONS""; ""IV. DATA, METHODOLOGY, AND RESULTS""; ""V. CONCLUSIONS AND NEXT STEPS""; ""REFERENCES""

Sommario/riassunto

This paper is a first analysis of daily transactions in the foreign exchange market of Barbados, a small open economy that has had an unchanged peg to the U.S. dollar for over 30 years. As a result of the credibility of the peg, we expect that capital flows will respond to differentials between U.S. and comparable Barbadian interest rates and that this will result in uncovered interest parity, when allowance is made for market frictions and large discrete events. The results are consistent with this hypothesis about the motivation for foreign exchange transactions.