Tarron Khemraj, New College of Florida, US and Caribbean Centre for Money and Finance, University of the West Indies

'One of the fundamental features of the financial system in most small island developing countries is the existence of oligopolistic banking systems. While economists have, for some time now, been working on developing models to explain the behaviour of firms in such market structures, this book is unique as it applies these tools to monetary models of the banking system. In doing so, the text highlights many of the important differences between banking systems in small states and those in larger and more developed markets. Applied researchers, policymakers, students and teachers examining the behaviour of financial systems in small states would find the text quite useful, as it provides fairly accessible theoretical models supported by relevant data and econometric analysis.'--Winston Moore, The University of the West Indies'In 162 pages this book makes an outstanding and novel presentation of the current functioning of the banking and foreign exchange markets in emerging economies and small open economies.'--Review of Keynesian Economics

• Contents: 1. Motivation and scope of study 2. Stylized facts and bank liquidity preference 3. Oligopolistic banking, compensation and financial stability 4. The bank liquidity trap 5. Compensation and endogenous money in an open economy 6. The investment demand constraint and the FX market 7. Concluding remarks References Index

Tarron Khemraj, New College of Florida, US and Caribbean Centre for Money and Finance, University of the West Indies

'One of the fundamental features of the financial system in most small island developing countries is the existence of oligopolistic banking systems. While economists have, for some time now, been working on developing models to explain the behaviour of firms in such market structures, this book is unique as it applies these tools to monetary models of the banking system. In doing so, the text highlights many of the important differences between banking systems in small states and those in larger and more developed markets. Applied researchers, policymakers, students and teachers examining the behaviour of financial systems in small states would find the text quite useful, as it provides fairly accessible theoretical models supported by relevant data and econometric analysis.'--Winston Moore, The University of the West Indies'In 162 pages this book makes an outstanding and novel presentation of the current functioning of the banking and foreign exchange markets in emerging economies and small open economies.'--Review of Keynesian Economics

• Contents: 1. Motivation and scope of study 2. Stylized facts and bank liquidity preference 3. Oligopolistic banking, compensation and financial stability 4. The bank liquidity trap 5. Compensation and endogenous money in an open economy 6. The investment demand constraint and the FX market 7. Concluding remarks References Index

Tarron Khemraj, New College of Florida, US and Caribbean Centre for Money and Finance, University of the West Indies

'One of the fundamental features of the financial system in most small island developing countries is the existence of oligopolistic banking systems. While economists have, for some time now, been working on developing models to explain the behaviour of firms in such market structures, this book is unique as it applies these tools to monetary models of the banking system. In doing so, the text highlights many of the important differences between banking systems in small states and those in larger and more developed markets. Applied researchers, policymakers, students and teachers examining the behaviour of financial systems in small states would find the text quite useful, as it provides fairly accessible theoretical models supported by relevant data and econometric analysis.'--Winston Moore, The University of the West Indies'In 162 pages this book makes an outstanding and novel presentation of the current functioning of the banking and foreign exchange markets in emerging economies and small open economies.'--Review of Keynesian Economics

• Contents: 1. Motivation and scope of study 2. Stylized facts and bank liquidity preference 3. Oligopolistic banking, compensation and financial stability 4. The bank liquidity trap 5. Compensation and endogenous money in an open economy 6. The investment demand constraint and the FX market 7. Concluding remarks References Index