Monetary policy and inflation–output variability in Sri Lanka: Lessons for developing economies

Government Policy in Monetary Economies

I study how the general and specific details of a micro founded monetary framework affect the determination of policy when the government has limited commitment. The conduct of policy depends on the interaction between the incentive to smooth distortions intertemporally and a time-consistency problem. In equilibrium, fiscal and monetary policies are distortionary, but long-run policy is not aff...

Designing an Optimum Fiscal Policy for Tobacco to Maximise the Tax Revenue, Social Savings and the Net Monetary Benefits in Sri Lanka

Background Fiscal policy targeting tobacco control is identified as the most effective strategy for rapid control of tobacco use. An optimum fiscal policy to estimate the percentage taxation that will maximise the government tax revenue, social savings and the net monetary benefit has not been empirically designed before in Sri Lank...

Monetary Policy and Unemployment in Open Economies

After an expansionary monetary policy shock employment increases and unemployment falls. In standard New Keynesian models the fall in aggregate unemployment does not a¤ect employed workers at all. However, Lüchinger, Meier and Stutzer (2010) found that the risk of unemployment negatively a¤ects utility of employed workers: An increases in aggregate unemployment decreases workers’subjective well...

A Poverty Map for Sri Lanka—Findings and Lessons

ICT Policy for Agriculture Based on a Transaction Cost Approach: Some Lessons from Sri Lanka

In Sri Lanka, the majority of farmers are generally poor,and rely on subsistence agriculture. If these farmers can even partially be made responsive to market needs, as opposed to current household needs, they could cultivate at least some income generating crops, which if sustained, can reduce their poverty. However, high transaction costs associated with obtaining market information have cont...