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Mr. Serhan Cevik and Tianle Zhu
Monetary independence is at the core of the macroeconomic policy trilemma stating that an independent monetary policy, a fixed exchange rate and free movement of capital cannot exist at the same time. This study examines the relationship between monetary autonomy and inflation dynamics in a panel of Caribbean countries over the period 1980–2017. The empirical results show that monetary independence is a significant factor in determining inflation, even after controlling for macroeconomic developments. In other words, greater monetary policy independence, measured as a country’s ability to conduct its own monetary policy for domestic purposes independent of external monetary influences, leads to lower consumer price inflation. This relationship—robust to alternative specifications and estimation methodologies—has clear policy implications, especially for countries that maintain pegged exchange rates relative to the U.S. dollar with a critical bearing on monetary autonomy.
Mr. Serhan Cevik and Tianle Zhu

changes in the magnitude of estimated coefficients, but monetary independence maintains its significant negative effect on inflation in the context of Caribbean countries over the period 1980–2017. VI. Conclusion In this paper, we consider the effect of monetary independence on inflation dynamics in a group of relatively homogenous Caribbean counties where pegged exchange rate regimes are prevalent. The results show that monetary independence has a statistically significant negative effect on inflation, regardless of the model specification and estimation

Mr. Bjoern Rother, Ms. Ivetta Hakobyan, and Mrs. Monica B de Bolle
The paper examines the evolution of public sector debt levels and structures in 12 emerging market countries around the time of financial crises. In particular, it focuses on whether the debt situation of sovereign borrowers became more vulnerable in the aftermath of crises. The principal findings are that (i) debt levels tend to increase significantly post-crisis, and (ii) countries often experience more rigid debt structures following such events, with an increase in the share of external public debt to multilateral creditors and a greater exposure of the domestic banking system to sovereign debt.
Mr. Bjoern Rother, Ms. Ivetta Hakobyan, and Mrs. Monica B de Bolle

appear to be closely related to the pre-crisis debt exposure of the sovereign. This suggests that creditors did not systematically differentiate the size of their emergency lending packages based on debt sustainability considerations. 15 The significant increase of multilateral claims can largely be explained by the debt dynamics in a group of five countries (Argentina, Brazil, Korea, Turkey, and Uruguay). For these countries, the average increase in the share of multilateral debt in total external sovereign debt amounted to about 18 percentage points between t–1