Question

ONE solution/policy that any Caribbean government could implement to minimise the impact of a financial crisis.

Answer 1

it can be mentioned that during the time of financial crisis it is very important for a country to maintain monetary and fiscal policies to overcome that and for a country like Caribbean where tourism is one of the major industry, it is important to maintain the exchange rate so that the tourism inflow would be there and it would not be much affected and therefore one solution to it is restricting the supply of money so that the currency remains stable and increasing the tax rate so that the government can bring in more revenue and reduce the costs as well.