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...

The Central Bank of Solomon Islands (CBSI) was established in 1983 with the objective of maintaining price and exchange rate stability. In the 1980s and 1990s, CBSI was forced to finance the government borrowing requirements as well. Ethnic violence in 1999 and subsequent efforts for restoration...

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...

Applying the procedures of variance decomposition and impulse response functions, this working paper aims to examine the impact of changes in policy variables namely, monetary aggregate (M1), exchange rate and interest rate on two monetary goal variables, namely output and price level in Fiji...