Between 1990 and 1994, the average size of the public sector in the Caribbean was just 16 percent of GDP, in the five years hence, the ratio has climbed and currently stands at 22 percent of GDP. While an expansion in the size of government usually results in the greater provision of services,...

A large body of literature exists on the potential impact that capital account liberalization has had on uncovered interest rate parity. However, it can also have important effects on domestic bank spreads by providing economies of scale and scope and increasing competitive pressures. This...