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#5008: Monetary Policy by the Central Bank of Haiti (fwd)
From: patrick richard <firstname.lastname@example.org>
The conclusion by the author of this article that the recent appreciation of
the gourde is due to the increase of the reserve requirement ratios on
liabilities puzzles me. I am not sure this appreciation is a result of the
recent policy.The Haitian banking system does not have the proper mechanisms
in place for such policy to be effective in such timely manner. Even in
industrialized countries, there are other issues such as lag time and
distortions that can negatively impact the results of such monetary policy.
That's why economists tend to isolate other factors before establishing any
I want to point that this type of financially repressive method is used
mainly by the government as a crucial source of revenue (inexpensive),
besides imposing an inflation tax and tapping tapping unto consumer surplus.
This sounds a more plausible explanation as to why the Haitian's government
embarked on such program as opposed as to reducing inflation primarily.
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