US EditionMonetary policy for a small open economy like Sri Lanka
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Monetary policy for a small open economy like Sri Lanka
ECONOMYNEXT – Developing countries like Sri Lanka often contend with structural rigidities particularly in labour and land markets which hinder growth but cannot be addressed by monetary policy. Additionally the “fear of floating” phenomenon as well as IMF-imposed reserve requirements often constrain the the practical implementation of genuinely floating exchange rates- a prerequisite for independent monetary policy. These challenges necessitat…
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