The relation between money and price has unique relevance in price stability. Rational expectations theorists hold that both anticipated and unanticipated money supply affect price level. This paper addresses this issue and enquires if anticipated and unanticipated money supplies have any role...

In this paper the role of public spending on the education and health sectors is examined with regard to promoting the gross domestic product (GDP) of 12 countries in Asia and the Pacific over the last three decades. In six of those countries, namely Bangladesh, Kiribati, Malaysia, Maldives, the...

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...

This paper examines the relative role of structural and monetary factors in the variation of inflation in India over the period 1996–1997: Q1 to 2013–2014: Q4. The paper finds that both the monetary factors and the output gap has significant role. The role of the output gap in inflation is...

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...

Background: This paper examines the role of monetary and fiscal factors in interest rate variations in Sri Lanka under its deregulated regime of interest rates. In addition the paper also examines the role of monetary factors in the variation of interest rates, using a quarterly dataset for the...

This paper enquires the dynamics of current account and capital account in Sri Lanka for the period 2001:Q1 to 2016:Q1 and also examines the role of some policy variables such as exchange rate and interest rate in this dynamics. Estimated autoregressive distributed lag (ARDL) bound testing...

This paper examines the role of monetary factors in the variation of nominal interest rates in India for the deregulated regime of interest rates and the exchange rates. Empirical analysis involves quarterly time series dataset including interest rates on 91-day, 364-day treasury bills (TBs),...

Sri Lanka is an open and market-oriented lower middle income economy situated in South Asia. It is one of the fastest growing economies in Asia and developing world in the recent years. Sri Lankan economy has achieved 6.4 per cent growth over the period 2003 to 2012. At the same period the...

Malaysia is a rapidly progressing high middle-income economy. As a highly open economy with an increasingly liberalized financial sector, the implementation of a comprehensive macroeconomic policy is a challenging task. This article inquires into the efficacy of money in raising income and...