The Jamaican economy needs a cathartic shock. For 20 years or so, the several Jamaican governments have been tinkering with the base interest rate in attempts to stem the decline of the Jamaican dollar. This has resulted in ridiculously high interest rates, which stifle the expansion of productive enterprises.

Instead, it has provided a steady cash cow for those with surplus money. For, who would risk money on production without guarantees when they can get 15-20 per cent on safe government paper? Meanwhile, despite the tinkering, which is still going on, the exchange rate has slipped by 1,000 per cent during those 20 years.

It is well past time to put a stop to this. So, peg the Jamaican dollar to a basket of major currencies at about the current rate and bring down the base interest rate to the low single digits.

Since the major portion of our public debt is held locally this would considerably ease the debt burden. It would, of course, cause howls of protest from Government debt holders, but it would moderate, inflation, ease the burden on the poor and middle classes and encourage producers. It would, also promote an illicit currency market, which could be controlled, if not halted. And, finally, looking at it from the politician's point of view, it would be more popular than unpopular.

I am, etc.,

WELL-WISHER

Mandeville

Manchester