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#5008: Monetary Policy by the Central Bank of Haiti (fwd)

From: patrick richard <rich0303@hotmail.com>

Dear Sir/Madam

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.

Patrick Richard

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