Monetary policy in the Organization of Eastern Caribbean States: How important is the Eastern Caribbean Central Bank in crafting policy

The paper examines the effectiveness of monetary policy at the local level in the Organization of Eastern Caribbean States. The study postulates that monetary policy should not be viewed strictly as the responsibility of the national government, instead, under specific conditions it can be viewed as a local development strategy. A combination of interviews and econometric techniques are used to determine whether monetary policy is as viable an economic development tool as other more widely discussed variables. The findings support the use of monetary policy in the local economy under the conditions that certain conditions are satisfied.