ANDRÉ BALADI / 1 REALIZING A CARIBBEAN MONETARY UNION

This paper discusses the implications a Caribbean monetary union will have on regional monetary policy, scal policy, and trade and growth before suggesting a number of policy options that will facilitate the required convergence amongst CARICOM members in creating a successful monetary union. It emphasizes the need for adjusting and enhancing the convergence criteria, establishing ex ante a set of scal rules with credible sanctions against non-conformers, and giving greater independence to central banks. Ultimately it recognizes that a monetary union will never be realized until there exists the requisite political commitment that binds members not only monetarily, but scally also