01774cas a2200253 a 4500 AALejournalIMF011630 230101c9999 xx r poo 0 0eng d 5.00 USD 9781463931223 1018-5941 BD-DhAAL BD-DhAAL Cashin, Paul. The Eastern Caribbean Currency Union : Would a Fiscal Insurance Mechanism Mitigate National Income Shocks? / Paul Cashin, Antonio Lemus. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (23 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 studies the nature of the shocks affecting the Eastern Caribbean Currency Union (ECCU), and examines whether a hypothetical Eastern Caribbean fiscal insurance mechanism could insure member countries of the union against asymmetric national income shocks. The empirical results suggest that a one dollar reduction in an ECCU member country's per capita personal income could trigger, through reduced income taxes and increased transfers, flows equivalent to about 7 percent of the initial income shock. Each member of the currency union could benefit as well, although the extent of shock mitigation differs across individual countries. Mode of access: Internet Lemus, Antonio. IMF Working Papers; Working Paper ; No. 2012/017 Full text available on IMF http://elibrary.imf.org/view/journals/001/2012/017/001.2012.issue-017-en.xml IMF e-Library