None of the 14 Pacific Island countries (PICs), except Papua New Guinea has any fossil fuel resources. Consequently, all the 13 PICs are totally dependent on oil imports for their economic activities. Recent surges in oil prices have had serious economic repercussions on economic growth. This...

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...