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Seaga pushes for dollarisation
Published: Saturday | July 18, 2009
Seaga
Former Prime Minister Edward Seaga has again recommended that the Government consider dollarisation as an antidote to Jamaica's economic stagnation and a currency which has devalued rapidly over the last two decades.
The term refers to the use of another currency, usually the United States dollar instead of a country's domestic currency or alongside it.
Seaga, who ruled the finance ministry during the 1980s, believes such a move would boost the Jamaican economy.
"One area that I would give full attention to is the dollar, and that is in respect of the debt that the dollar is servicing and the interest rate that the dollar is supporting. We have no reason not to peg the exchange rate.
"I've always said, 'Look at dollarisation', I never said do it. We're getting to the point now where it's an extreme measure but one that has extreme positive results if it can be done," Seaga said Tuesday during the 'Independent Talk' radio talk show on Power 106FM.
Seaga, pro-chancellor of the University of Technology, Jamaica, again suggested other measures that the Government could use to reduce Jamaica's fiscal deficit.
revamp its payroll system
He said the Government could further cut the public sector as well as revamp its payroll system in addition to reducing the amount of money spent on debt servicing.
On the issue of the International Monetary Fund (IMF), Seaga, who was involved in previous negotiations in the 1980s, said he has not been contacted by the Golding administration for advice on the ongoing talks with the global lending agency.
The Government has been criticised for excluding what the Opposition has described as critical parties in the discussions with the IMF. Finance Minister Audley Shaw has also received flak for not taking a lead role in the talks.
Published: Saturday | July 18, 2009
Seaga
Former Prime Minister Edward Seaga has again recommended that the Government consider dollarisation as an antidote to Jamaica's economic stagnation and a currency which has devalued rapidly over the last two decades.
The term refers to the use of another currency, usually the United States dollar instead of a country's domestic currency or alongside it.
Seaga, who ruled the finance ministry during the 1980s, believes such a move would boost the Jamaican economy.
"One area that I would give full attention to is the dollar, and that is in respect of the debt that the dollar is servicing and the interest rate that the dollar is supporting. We have no reason not to peg the exchange rate.
"I've always said, 'Look at dollarisation', I never said do it. We're getting to the point now where it's an extreme measure but one that has extreme positive results if it can be done," Seaga said Tuesday during the 'Independent Talk' radio talk show on Power 106FM.
Seaga, pro-chancellor of the University of Technology, Jamaica, again suggested other measures that the Government could use to reduce Jamaica's fiscal deficit.
revamp its payroll system
He said the Government could further cut the public sector as well as revamp its payroll system in addition to reducing the amount of money spent on debt servicing.
On the issue of the International Monetary Fund (IMF), Seaga, who was involved in previous negotiations in the 1980s, said he has not been contacted by the Golding administration for advice on the ongoing talks with the global lending agency.
The Government has been criticised for excluding what the Opposition has described as critical parties in the discussions with the IMF. Finance Minister Audley Shaw has also received flak for not taking a lead role in the talks.
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