Alternative Monetary Regimes for Jamaica was an economic analysis published in 1995 by two economists from Johns Hopkins University, commissioned by the Private Sector Organization of Jamaica.
In it you will read the opinion of rational, logical beings dissecting Jamaica’s horrendous monetary policies over the decades and also their attempt to give some economic direction to the inept Jamaican Ministry of Finance and an equally inept Bank of Jamaica who have, in cooperative unison, destroyed the Jamaican economy and undermined the Jamaican dollar through bad monetary policy, as they fanned the flames of inflation.
AN EXCERPT FROM: ALTERNATIVE MONETARY REGIMES FOR JAMAICA
by Steve H. Hanke and Kurt Schuler
The Johns Hopkins University
“In the last 25 years Jamaica has fallen further and further behind economically developed countries. Jamaica has had almost no economic growth per person, while developed countries have grown 2 percent or more per person a year on average (World Bank 1995: 162-5). In the 1950s and 1960s it seemed that Jamaicans would slowly catch up to the standard of living that West Europeans or Americans enjoy. Since the 1970s that goal has faded into the distance.
The consequences have been harmful to Jamaica. Slow economic growth has contributed to unemployment and emigration of talented Jamaicans to other countries. It has affected the health of Jamaicans by allowing malnutrition and the incidence of certain diseases to be more frequent than they would be if Jamaica were richer. And it has kept Jamaica a laggard in fields that require a foundation of considerable wealth: higher education, scientific and technical research, advanced manufacturing, communications, medicine–the growth industries of the coming century. Slow economic growth has also contributed to discontent and social unrest. Jamaica’s politicians are dancing on a volcano. Unless they can deliver a sound currency and sustained economic growth, an eruption is bound to occur.
Government policies have been mainly responsible for Jamaica’s economic stagnation.
From before independence until the last few years there was a consensus of opinion in Jamaican politics that the government should intervene extensively in the economy. The two major political parties differed on the precise extent of intervention, but agreed that the Jamaican economy could benefit from government ownership of major industries, foreign-exchange controls, subsidies to favored industries, protective tariffs, and regulation of many aspects of economic life.
Monetary policy has contributed to the stagnation. Good monetary policy is necessary but not sufficient for sustained economic growth.” (READ MORE)