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This paper explores the effects of money creation on real output on non-tradable in small open economies. If these effects are significant, monetary expansion has important implications for growth and inflation. The model used envisages a market adjustment mechanism for non-tradables, from which the output is implied of non-tradables as determined by the output of tradables, by money creation and by exogenous factors such as world prices and interest rates. The model is tested using data for Barbados, Jamaica, and Trinidad & Tobago.