The primary objective of this thesis is to analyse
the relationship between money and the macro-economy in Sri
Lanka between 1977 and 1985, in order to identify the paths
through which monetary policy impulses are transmitted over
this period. In doing so, - we also hope to highlight the use
of macro-simulation as a tool for the analysis of the
monetary transmission mechanism and to emphasise the importance
of formulating monetary policy within an explicit
monetary control framework. This is especially important in
Sri Lanka since monetary policy has been a key instrument
of demand management since 1977 and historically there has
been a noticeable absence of an explicit monetary control
framework.
Empirical research on the monetary transmission
mechanism has been very limited as far as developing countries
are concerned. An exception here is the SEACEN (1981)
study which simulates the effects of monetary shocks on a
number of South East Asian countries, including Sri Lanka,
using a flexible monetarist approach. Our research is based
upon a revision of the specification of this model for Sri
Lanka and a more comprehensive disaggregation of the monetary
transmission channels.
Our empirical model produces statistical results
which are generally acceptable and conform to a Priori
expectations. This model is then simulated dynamically,
both, to validate the equations in the context of a complete
model and to quantify the impact of alternative
policy scenarios relating to the monetary transmission
mechanism in Sri Lanka.
We believe that our results will help to shed light
on the nature of the monetary transmission mechanism in
developing countries as well as provide the basis for an
on-going analysis of monetary management in Sri Lanka. / Central Bank of Sri Lanka
| Identifer | oai:union.ndltd.org:BRADFORD/oai:bradscholars.brad.ac.uk:10454/4341 |
| Date | January 1989 |
| Creators | Jayamaha, Ranee |
| Contributors | Wilson, P.R.D., Wise, J. |
| Publisher | University of Bradford, Postgraduate School of Studies in Planning |
| Source Sets | Bradford Scholars |
| Language | English |
| Detected Language | English |
| Type | Thesis, doctoral, PhD |
| Rights | <a rel="license" href="http://creativecommons.org/licenses/by-nc-nd/3.0/"><img alt="Creative Commons License" style="border-width:0" src="http://i.creativecommons.org/l/by-nc-nd/3.0/88x31.png" /></a><br />The University of Bradford theses are licenced under a <a rel="license" href="http://creativecommons.org/licenses/by-nc-nd/3.0/">Creative Commons Licence</a>. |
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