Question

What are some of the monetary policy tools used by Central Bank and which are more likely to have the desired out come in the English-speaking Caribbean territories based on empirical evidence? What does it therefore suggest about the "One policy fit all" approach especially the region will converge into a single Caribbean Union "CSME"

Answer 1

The Carribean Union faces the problem of recessionary curve and stagnant growth and high level of indebtedness. GDP stands at 145billion$ and

One Policy Fit All:

Hence the central bank should be poised to adopt an expansionary monetary policy by reducing interest rates as well as open market operations by buyibg back government securities to ease liquidity in economy  

This can boost Entire Carribean Union and help raise aggregate demand which can create higher employment as well as higher GDP prospects .