Monetary Policy and Inflation-Output Variability in Sri Lanka: Lessons for Developing Economies

Kesavarajah Mayandy and Paul Middleditch

Economics Discussion Paper Series from Economics, The University of Manchester

Abstract: This paper examines the impact of monetary policy on the inflation-output variability trade-off for Sri Lanka, drawing monetary policy lessons for developing economies. We examine how this trade-off has changed across different monetary policy episodes, and investigate the persistence of the variability of inflation and output after supply and demand shocks. Finally we explore the contribution of monetary policy to macroeconomic performance more generally. Learning from the experience of Sri Lanka, our findings suggest that more recently formed central banks should focus on inflation variability, especially where the impact of demand and supply shocks are less persistent.

JEL-codes: E52 E58 O23 (search for similar items in EconPapers)
Date: 2020-04
New Economics Papers: this item is included in nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://hummedia.manchester.ac.uk/schools/soss/eco ... npapers/EDP-2001.pdf (application/pdf)

Related works:
Journal Article: Monetary policy and inflation–output variability in Sri Lanka: Lessons for developing economies (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:man:sespap:2001

Access Statistics for this paper

More papers in Economics Discussion Paper Series from Economics, The University of Manchester Contact information at EDIRC.
Bibliographic data for series maintained by Patrick Macnamara ().