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This paper explores the effect of money on output, prices and the trade balance in the economies of Barbados and Trinidad and Tobago. A simple aggregate monetarist model is used in which real cash balances play a leading role in the determination of output, prices and the trade balance. The paper describes the openness of the two economies and provides recent trends in trade with the United States of America - the major trading partner. It also deals with the theoretical framework for monetary mechanism in small open economy and provides empirical results which are analysed. (Previous title: Collection of unpublished research papers)