ECCB 2014-2015 Annual Report and Statement of Accounts

EASTERN CARIBBEAN CENTRAL BANK

•  • An Examination of Interest Rate Convergence in the ECCU Banking Sector; •  • Towards a Policy on Foreign Direct Investment within the Context of OECS Economic Union; •  • Convergence and Macroeconomic Adjustment; •  • The Tourism-Growth Link in the ECCU: Evidence from Panel Co-integration; •  • The Investment Paradox; •  • The Stock Market and Macroeconomic Variables: Evidence from the ECCU; and •  • Foreign Demand, Exports and Diversification. The Bank presented papers at two external conferences during the year: (i) the 34 th Central Bank of Barbados Review Seminar and (ii) the 46 th Annual Monetary Studies Conference organised by the Caribbean Centre for Money and Finance (CCMF). A paper titled: “The Impact of Natural Disasters on Public Debt Accumulation in Selected ECCU Countries”, was presented at the Central Bank of Barbados Review Seminar. The paper examined the impact of natural disasters on ECCU economies, and proposed that severe disasters led to an increase in the public Debt to GDP Ratio. A study on “Macro-financial Linkages in the ECCU” was delivered at the Annual Monetary Studies Conference. Two volumes of the ECCB Working Paper Series were published on the Bank’s website during the period. The first volume, published in June 2014, include three papers: 1. A Critical Assessment of the Theoretical Framework of IMF Adjustment Programmes; 2. Accommodations, Occupancy Rates and ECCU Tourism Development; and

3. Has the Credit-GDP Relationship Changed?

The second volume was a Special Edition Working Paper Series, featuring the work of the 2014 University of the West Indies summer interns. The papers in that volume are: •  • Trade Policy in the ECCU and Implications for Competitiveness: Assessing the Viability of the Canada-Caricom FTA; •  • Exploring Opportunities for ECCU Tourism: Looking Toward the Emerging Economies; and •  • Specialisation vs Diversification: The Implications for Economic Growth in the ECCU. Economic Surveillance The economic surveillance and intelligence gathering function of the Bank is concentrated in the Research Department, executed primarily through the Country Economist Unit. The main objective of the economic surveillance function is to monitor developments in member countries and disseminate macro data and information via the publication of quarterly reviews and annual reports. In addition, technical assistance is provided to member governments in their preparation for missions of international organisations, such as the IMF and The World Bank, and in the preparation of policy papers relating to fiscal and debt stabilisation issues in member countries. In fulfilment of its surveillance mandate, the Bank prepared and published four economic and financial reviews for 2014 - three quarterly and one annual.

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ECCB ANNUAL REPORT 2014/2015