01719cas a2200265 a 4500 AALejournalIMF004525 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451865059 1018-5941 BD-DhAAL BD-DhAAL Mitchell, Travis. A Small Foreign Exchange Market with a Long-Term Peg : Barbados / Travis Mitchell, Roland Craigwell, Rupert Worrell. Washington, D.C. : International Monetary Fund, 2006. 1 online resource (18 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper is a first analysis of daily transactions in the foreign exchange market of Barbados, a small open economy that has had an unchanged peg to the U.S. dollar for over 30 years. As a result of the credibility of the peg, we expect that capital flows will respond to differentials between U.S. and comparable Barbadian interest rates and that this will result in uncovered interest parity, when allowance is made for market frictions and large discrete events. The results are consistent with this hypothesis about the motivation for foreign exchange transactions. Mode of access: Internet Craigwell, Roland. Worrell, Rupert. IMF Working Papers; Working Paper ; No. 2006/245 Full text available on IMF http://elibrary.imf.org/view/journals/001/2006/245/001.2006.issue-245-en.xml IMF e-Library