The divergence is explained by policy choices, not institutions: Jamaica's government in the early 1970s adopted large fiscal deficits, nationalization, social spending, fixed exchange rates, import and foreign-exchange restrictions, while Barbados pursued macroeconomic stability and avoided trade and exchange restrictions.

causalpending

Speaker

Peter Henry

Evidence Quote

our hypothesis is that it was the policies that the Jamaican government decided to adopt... that led to this divergence

Source

Peter Henry on Growth, Development, and Policy 07/27/2009EconTalk
Created: 6/17/2026, 10:31:29 AM

My Notes

Loading notes...