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Monetary policy in Solomon Islands

CollectionsPacific Economic Bulletin (1991-2010)
Title: Monetary policy in Solomon Islands
Author(s): Sterne, Gabriel
Publisher: Crawford School of Public Policy, The Australian National University
Asia Pacific Press
The paper provides a detailed analysis of the formulation, operation and impact of monetary and exchange rate policy in the Solomon Islands since 1980. It focuses on the negative impact of consistently expansionary fiscal policy in limiting the potential of monetary policy to pursue macroeconomic targets. It also stresses the role of the exchange rate in such a highly open economy. If fiscal policy can be tightened, this would provide potential for the development of monetary instruments, and for progress in achieving lower inflation, growth in external reserves, and a stable economy conducive to private sector growth
ISSN: 1834-9455 (online)
0817-8038 (print)


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