Edwards, Sebastian, 1994, “Real and Monetary Determinant of Real Exchange Rate Behavior: Theory and evidence from Developing Countries,” published in Williamson, John, ed., Chapter 4.
Kent, Christopher, 1995, Exchange Rate Pass-Through: Testing the Small Country Assumption for Australia, mimeo. Reserve Bank of Australia.
McCarthy, Jonathan, 2000, “Pass-Through of Exchange Rates and Import Prices to Domestic Inflation in Some Industrialized Economies,” mimeo, Federal Reserve Bank of New York.
Prepared by Stephanie Eble (WHD).
Eighty seven percent of the total labor force work in the non-energy sector, 3 percent in the energy sector, and the remaining 10 percent are unemployed.
This is calculated as a geometric average of bilateral exchange rates and consumer prices inflation between the Trinidad and Tobago dollar and other currencies, weighted by non-energy merchandise export shares with 1990 as base year.
The data set covers the period 1990–2003 and is based on quarterly observations.
The variables used are the exchange rate of the Trinidad and Tobago dollar to the U.S. dollar, domestic consumer prices, and the production index as a proxy for aggregate demand. The data are quarterly and the sample period covers 1994–2003. The results were not sensitive to the ordering of the variables.
The current rules stipulate that deposits and withdrawals to the Revenue Stabilization Fund (RSF) are to be made when quarterly energy tax revenues and royalties exceed or fall below the quarterly revenues anticipated in the budget by 10 percent of more. Deposits should be at least 67 percent of the difference between realized and budgeted revenues, and withdrawals are to be equal to the lesser of: (i) the petroleum taxation deviation for the quarter/year under reference; and (ii) 25 percent of the balance of the RSF at the beginning of the quarter/year.