Start Submission Become a Reviewer

Reading: Inflation Targeting versus Monetary Targeting - The Case of Sri Lanka

Download

A- A+
dyslexia friendly

Articles

Inflation Targeting versus Monetary Targeting - The Case of Sri Lanka

Author:

S Manisha Wimalasuriya

Economic Research Department of the Central Bank of Sri Lanka, LK
About S
Ms. Manisha Wimalasuriya is a Senior Economist of the Economic
Research Department of the Central Bank of Sri Lanka. Her
research interests are mainly in the areas of monetary policy and
macroeconomic modelling. She has obtained a B.A. Honours
Degree in Economics from the University of Colombo, an MBA
from the University of Sri Jayewardenepura and an M.Sc. in
Economics from the University of Essex, U.K.
X close

Abstract

High and volatile inflation could result in significant negative outcomes leading to loss of social welfare, which underscores the necessity of having in place an effective monetary policy regime. Increasingly larger numbers of countries have shifted to an inflation targeting regime, following the success of those that adopted inflation targeting in the early 1990s. Analysing Sri Lanka's monetary policy regime suggests that, monetary targeting, although appropriate for effectively controlling inflation, seems to lack the institutional features that have enabled inflation targeting regimes to achieve low and stable inflation in the long-run. This makes inflation targeting an attractive alternative to countries presently in a monetary targeting regime, experiencing high or volatile inflation. (JEL E42)  

DOI: 10.4038/ss.v38i1.1221

Staff Studies Volume 38 Numbers 1& 2 2008 p.45-74

How to Cite: Wimalasuriya, S.M., (2009). Inflation Targeting versus Monetary Targeting - The Case of Sri Lanka. Staff Studies. 38(1), pp.45–74. DOI: http://doi.org/10.4038/ss.v38i1.1221
2131
Views
3595
Downloads
Published on 14 Oct 2009.
Peer Reviewed

Downloads

  • PDF (EN)

    comments powered by Disqus