Facing the Global Financial Crisis - Policy Lessons from Small Mauritius

"The objective of the paper therefore is to assess the case of a small island developing state like Mauritius where government has attempted to mitigate the negative consequences of the global economic crisis through an appropriate policy mix. So far, Mauritius has been resilient to the world economic downturn and is viewed as an example for other developing and emerging economies. Our paper is structured as follows. In section 2, we analyse the various transmission channels via which the crisis operates on the Mauritian economy. Section 3 discusses the macroeconomic performance of Mauritius in the event of the crisis. Section 4 reviews the appropriate policy mix implemented by government to increase the resilience and optimism of the country to the present crisis. We finally conclude in section 5."