This study examines how monetary and fiscal policies are implemented in Pacific small states and the impact on growth and development in these countries. It carefully sets out both the policy and institutional constraints in monetary and fiscal policy management, provides case study examples of policy implementation in practice, and suggests policy options that can be used by these countries.
T.K. Jayaraman is an Associate Professor in the School of Economics, the University of the South Pacific. His current areas of research are aid effectiveness in Pacific island countries and regional economic integration with single economic space and a single currency. Professor Paresh Narayan is a Professor of Finance at Deakin University, Melbourne, Australia and an Adjunct Professor of Economics at the University of the South Pacific. He is also a consultant to a number of private and international institutions.
About the authors Acknowledgements Tables, figures and boxes Abbreviations and acronyms Pacific Island currencies Preface 1. Monetary Policy Transmission Mechanisms in Pacific Island Countries by TK Jayaraman 1.1 Background 1.2 Policy strategies 1.3 Empirical evidence in Pacific island countries 1.4 Financial sectors in PICS 2. Fiscal Policy Frameworks in Pacific Island Countries by Paresh Narayan 2.1 Introduction 2.2 Key issues and lessons learned 2.3 Fiscal policy strategies in the PICs 2.4 Country case studies 2.5 Financial crisis and the PICs 2.6 Conclusions and recommendations 3. Macroeconomic Performance in Six Pacific Island Countries by TK Jayaraman 3.1 Introduction 3.2 Fiji 3.3 Papua New Guinea 3.4 Samoa 3.5 Solomon Islands 3.6 Tonga 3.7 Vanuatu Appendix 1. Monetary Policy Instruments: Chronological Developments Appendix 2. Socio-economic Profile of PICs