IMF publishes study on open economy quarterly projection model for SL

Wednesday, 27 June 2018 00:10 - - {{hitsCtrl.values.hits}}

The International Monetary Fund (IMF) has published a working paper on an open economy quarterly projection model for Sri Lanka which documents a semi-structural model developed for Sri Lanka.

According to the authors, this model, extended with a fiscal sector block, is expected to serve as a core forecasting model in the process of the Central Bank of Sri Lanka’s move towards flexible inflation targeting.

The model includes a forward-looking endogenous interest rate and foreign exchange rate policy rules allowing for flexible change in policy behaviour. It is a gap model that allows for simultaneous identification of business cycle position and long-term equilibrium.

The full report can be downloaded at www.imf.org/en/Publications/WP/Issues/2018/06/25/An-Open-Economy-Quarterly-Projection-Model-for-Sri-Lanka-45984.