Towards Inflation Targeting in Sri Lanka /

This paper develops a practical model-based forecasting and policy analysis system (FPAS) to support a transition to an inflation forecast targeting regime in Sri Lanka. The FPAS model provides a relatively good forecast for inflation and a framework to evaluate policy trade-offs. The model simulati...

पूर्ण विवरण

ग्रंथसूची विवरण
मुख्य लेखक: Ding, Ding
अन्य लेखक: Anand, Rahul, Peiris, Shanaka
स्वरूप: पत्रिका
भाषा:English
प्रकाशित: Washington, D.C. : International Monetary Fund, 2011.
श्रृंखला:IMF Working Papers; Working Paper ; No. 2011/081
ऑनलाइन पहुंच:Full text available on IMF
विवरण
सारांश:This paper develops a practical model-based forecasting and policy analysis system (FPAS) to support a transition to an inflation forecast targeting regime in Sri Lanka. The FPAS model provides a relatively good forecast for inflation and a framework to evaluate policy trade-offs. The model simulations suggest that an open-economy inflation targeting rule can reduce macroeconomic volatility and anchor inflationary expectations given the size and type of shocks faced by the economy. Sri Lanka could aim to target a broad inflation range initially due to its susceptibility supply-side shocks while enhancing exchange rate flexibility and strengthening the effectiveness of monetary policy in the transition to an inflation forecast targeting regime.
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भौतिक वर्णन:1 online resource (28 pages)
स्वरूप:Mode of access: Internet
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