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A Small Foreign Exchange Market with a Long-Term Peg :, Barbados, Travis Mitchell, Roland Craigwell, Rupert Worrell

Abstract
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
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. THE INSTITUTIONAL FRAMEWORK""; ""III. THEORETICAL CONSIDERATIONS""; ""IV. DATA, METHODOLOGY, AND RESULTS""; ""V. CONCLUSIONS AND NEXT STEPS""; ""REFERENCES""
Language
eng
Literary Form
non fiction
Note
"October 2006."
Physical Description
1 online resource (20 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781462323562

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