Mundell-Fleming model of open economy macroeconomics has amply established that the nature and direction of causal relationship between money supply and exchange rate depend on the exchange rate regimes. Particularly bidirectional causal relation between domestic money supply and exchange rate...

Accumulation of public debt in Sri Lanka is raised significantly since the independence. It exceeded 100 percent of gross domestic products (GDP) in the late 1980s and the early 2000s. Although it has been declined in the recent past and becomes 79.3 percent of GDP in 2016; the high level of debt in...

Whether public debt spurs economic growth is an unsettled issue in both theoretical and empirical grounds. The issue has attracted lots of attention to economists and policymakers in recent times. This article addresses the debt–growth issue in the case of a small emerging south Asian country...