Fiscal Policy
Starting April 2013, a tax reform package that has been created over the past few years will finally be executed. The goals for the package include things such as lowering personal income tax, expanding the tax base for consumption taxes, and corporate income tax. According to Dr. Peter Phillips (Minister of Finance and Planning), "[the package] is intended to meet the revenue demands of the budget, ensure greater equity and simplicity and increase compliance". With that said, the overall goal for the tax reform package would be classified as an expansionary policy because there will be a decrease in taxes. The macro goal that is being set to accomplish is a high and sustained growth.
Source: http://www.jamaicaobserver.com/news/White-paper-on-tax-reform-to-be-tabled-next-week_13000124#ixzz2CpSAvEbT
Source: http://www.jamaicaobserver.com/news/White-paper-on-tax-reform-to-be-tabled-next-week_13000124#ixzz2CpSAvEbT
Monetary Policy
The Bank of Jamaica controls the monetary policy. Recently
for an open market operation they offered three varaible rates from October 31, 2012, to November 5, 2012.One of the variable instruments were a 182-day ceritifacate of depoist (unlimited amount). Reprice quartly of 0.8%. 7.17% per annum. Offer extended to all Primary Dealers and commericals. The macro goal being affected here is high and sustained growth. The type of policy that is happeneing is expanisionary.
Source: http://www.boj.org.jm/uploads/pdf/boj_omo_press_release_30_oct_2012.pdf
for an open market operation they offered three varaible rates from October 31, 2012, to November 5, 2012.One of the variable instruments were a 182-day ceritifacate of depoist (unlimited amount). Reprice quartly of 0.8%. 7.17% per annum. Offer extended to all Primary Dealers and commericals. The macro goal being affected here is high and sustained growth. The type of policy that is happeneing is expanisionary.
Source: http://www.boj.org.jm/uploads/pdf/boj_omo_press_release_30_oct_2012.pdf