Global growth has slowed down recently. While the world economy should gradually regain pace over the coming quarters, overall growth momentum is expected to remain subdued. The recent drop in oil prices has not improved the outlook as it to a substantial degree signals weaker demand;...

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...

Inward remittances have been a great support to Tongan economy. Aside from being a major source of foreign exchange earnings, they supplement domestic savings and real resources. This paper examines how remittance inflows in combination with increased financial development during a 28 year...

The Pacific island countries (PICs) have been among the worlds top ten recipients of official development assistance (ODA) on a per capita basis. This paper seeks to examine the effectiveness of external aid by undertaking a panel data study covering five countries in the South Pacific, namely...

Remittances have been a great support to Pacific island countries (PICs). Aside from providing additions to domestic savings and hence real resources, they have been one of the major sources of foreign exchange earnings. In the context of falling exports and limited options to diversify their...

There has been a general consensus among economists that while the long-run effects of money are felt only on prices with no impact on real variables, monetary policy changes do have important short-run effects on real variables. The objective of the paper is to investigate whether money has...