The coronavirus (COVID-19) pandemic continued to be a challenge to economic activity for Jamaica and the rest of the world during the December 2021 quarter. Nonetheless, the domestic economy showed continued signs of recovery, foreign reserves remained robust, employment rose, and the financial system remained resilient. However, BOJ remained concerned about domestic inflation which accelerated significantly above the upper end of the Bank's 4.0 per cent to 6.0 per cent target.

Consequently, the Bank decided to pursue stronger measures to ensure that inflation returns to the target range in the shortest possible timeframe?

 

Source: https://boj.org.jm/wp-content/uploads/2022/02/February-2022-QMPR.pdf

 

A.   Explain the two tax (2) policies that a government can pursue. State which one would be needed based on the excerpt above and give practical examples of how this policy can be executed?

 

B.   Describe the cannons of equity and productivity. State how Jamaica's tax system can benefit if these two cannons are implemented?

Answer rating: 100% (QA)

A There are two central tax policies that a government can pursue to address economic challenges fis... View the full answer