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Sliding dollar requires policy response — CaPRI

Christopher Tufton

THE Caribbean Policy Research Institute (CaPRI) is advocating that the Government assess its social safety net initiatives, such as the Programme of Advancement Through Health and Education (PATH) — in light of the sliding dollar — to cushion the impact of increased prices on the most vulnerable, even while it implements reforms that will encourage businesses to be more efficient and expand.

According to CaPRI, the devaluation of the Jamaican dollar will lead to increased prices, which could have severe consequences for the most vulnerable in the society, such as pensioners and persons living at or below the poverty line.

"For them, it will be a painful adjustment as their incomes are primarily fixed or are already inadequate and will now value less," Co-executive Director of CaPRI Dr Christopher Tufton said in a release issued yesterday.

According to Tufton, the Government would also have to brace for social pressures from wage increase demands which could have a further destabilising effect on the economy.

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