Dollarization: The Pros and Cons for Caribbean States

• Author: Courtney Blackman
• Pages: 259-270

DOLLARIZATION

259

I must commend the Commissioner for her diligent approach to

the determination of an appropriate currency regime for St.

Maarten. This is the kind of decision it is important to get right

the first time; the costs of a wrong decision could be disastrous.

Since the collapse of the Bretton Woods fixed exchange rate

international monetary system, we have been reminded time and

again that a sound currency is a prerequisite for sustained

economic growth.

I am even more impressed that the Commissioner has involved

Civil Society in the consultations leading up to this most important

decision. Again and again events around the world have

demonstrated that economic policies embarked upon without the

involvement of those affected are unlikely to succeed. I am equally

impressed that so many of you have turned out this evening to

participate in this consultative exercise.

I have been greatly assisted in my assignment by the excellent

booklet Central Banking and Currency in the Country of St. Maarten,

prepared by the Work Group for Constitutional Affairs. In eleven

brief pages the study has touched on the key issues, treating them

in a most balanced and sophisticated manner. I have no

fundamental disagreement with the report.

13

DOLLARIZATION

THE PROSAND CONSFOR CARIBBEAN STATES