This paper examines liquidity in the banking system under a fixed exchange rate regime. By employing two measurement procedures, it is found during last 15-year period (1994-2008) and particularly, in recent months, there have been large fluctuations in liquidity. They are partly influenced by...

The financial crisis in USA in late 2007 led to fall in economic activities in the industrialized countries. A global recession was triggered, with resulting decline in imports from Pacific island countries (PICs) and falling tourism earnings. Monetary policy options, which are available to six...

In the context of the ongoing current global economic downturn, mobilization of foreign exchange earnings has assumed considerable importance. By adopting an augmented Solow model approach, this paper examines the long-run growth effects of Fijis inward remittances during a threedecade period...

Vanuatu is a pure tax haven. Freedom of movement of capital and absence of direct taxation of any kind on citizens and resident expatriates alike made Vanuatu an attractive offshore financial center (OFC) in the Pacific. Vanuatu for its budgetary needs has therefore, been depending on indirect...

Tongas monetary authority, National Reserve Bank of Tonga (NRBT) is entrusted with the responsibility of managing Tongas monetary system and exchange rate stability. This paper undertakes an empirical study of monetary policies pursued by NRBT with specific focus on the transmission mechanism of...