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In this episode of Caribbean Progress, Rasheed speaks with Dr. DeLisle Worrell, a renowned economist and former Governor of the Central Bank of Barbados. They discuss many policy topics, including why the standard macroeconomic models of the foreign exchange constraint in open economies should be revised. How dollarization brings fiscal credibility to consolidation policies. They also explore the economic dislocation that occurred in the Caribbean post-independence.

Resources
Development and Stabilization in Small Open Economies: Theories and Evidence from the Caribbean Experience by Dr. DeLisle Worrell

Key Points

[07:08] Against Foreign Currency Constraints
[10:46] How to Measure Productivity and Competitiveness
[12:23] Prudent Management of a Small Economy
[17:31] Faulty IMF and Caribbean Government Models
[26:34] Optimal Government Fiscal Consolidation
[27:28] Difficulty for Barbados to Have a Good Fiscal Consolidation Policy
[28:43] The Better Economic Model for Caribbean Central Bankers
[31:16] What it Means to Import Inflation
[32:08] Understanding Currency Substitution in the Caribbean
[40:21] Barbados 2013 Fiscal Crisis
[43:54] How a Government Borrows from the Central Bank
[45:57] How Sovereign Are Caribbean Countries After Independence

Contact Info: Dr. DeLisle Worrell
Website: www.delisleworrell.com

Email us at progress@cpsi.org

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