An Autoregressive Test of Inflation and Economic Performance

in the Caribbean There is a growing consensus that monetary policy occupies a primary position in macroeconomic management. In this study we analyse how monetary policy performed in a sample of Caribbean countries. In a descriptive statistics analysis, framed within the discretion versus rules debate, we argue that there is not only an association between monetary policy, inflation and economic performance but also that the institutional contexts provided varying degrees of constraints on policy. We use a univariate analysis on the price variables to conduct a comparative analysis on inflation and examined the background to the relationship between mean inflation and inflation persistence