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In Barbados, and the Caribbean as a whole, very little research has been done on the topic of the informal economy. This paper attempts to estimate the size of the Barbadian informal sector, using two indirect techniques. Annual data from 1974 to 2001 was applied to the currency demand approach, while the labor force statistics method utilized data from 1975 to 1998. Both systems generated similar results, showing the informal economy in Barbados is very small. However, this sector, no matter how small in size, should be taken into account while making policy decisions and hence, deserves further investigation.