This study examines how monetary and fiscal policies are implemented in Pacific small states and the impact on growth and development in these countries. It carefully sets out both the policy and institutional constraints in monetary and fiscal policy management, provides case study examples of policy implementation in practice, and suggests policy options that can be used by these countries.About the Author: T.K. Jayaraman is an Associate Professor in the School of Economics, the University of the South Pacific. His current areas of research are aid effectiveness in Pacific island countries and regional economic integration with single economic space and a single currency.Professor Paresh Narayan is a Professor of Finance at Deakin University, Melbourne, Australia and an Adjunct Professor of Economics at the University of the South Pacific. He is also a consultant to a number of private and international institutions.