This paper attempts to examine empirically the impacts of the institutional changes on the Hong Kong's interest rate, and to evaluate the relative merit of rules versus discretion over three distinct regimes. Our result suggests that the stance of policy making is associated with stability of...

Recent turbulence in global and Caribbean regional financial markets underscore the importance of reassessing the adequacy of international reserves held by the Eastern Caribbean Central Bank (ECCB). Using the Jeanne (2007) optimization framework, this paper finds that international reserves...

The paper analyzes the challenges for the Eastern Caribbean Central Bank (ECCB) to be an effective lender of last resort (LOLR) as part of a modern banking crisis resolution framework. The main results from the theoretical model of the ECCB's institutional arrangement are that the majority of...