Guest Writer - Deshal De Mel
gold

The Unseen Impact of US Tapering of Quantitative Easing on the Sri Lankan Economy

Sri Lankan authorities often point out that Sri Lanka has not been as badly affected by the Federal Reserve’s tapering of quantitative easing (QE) as other emerging/frontier economies. In a conventional sense, this may be correct. Yet, this article considers how QE tapering affecting world gold prices impacted Sri Lanka through the gold pawning channel. It argues that US tapering has in fact had a very significant impact on the Sri Lankan economy, in terms of monetary contraction, consumption, bank asset quality and also in terms of financial inclusion.

Sri Lanka as an Emerging Economy

By Deshal de Mel, Research Economist – IPS An article recently featured in the Economist (http://bit.ly/aBpGB1) outlined some of the developments in the world’s major emerging markets – particularly focusing on the evolution of these economies from sources of cheap …

Fourth Quarter GDP: Recovery of Industry but Downside Risks Remain

> By Deshal De Mel – Research Economist – IPS In the final quarter of 2009 Sri Lanka’s economy continued to recover from a poor economic performance in the first half of 2009. The 6.2% fourth quarter growth signaled a …

Challenges to the Liberal Global Economic Environment

By Deshal de Mel and Dharshani Premaratne One of the persisting impacts of the global economic crisis has been on employment levels in America, Europe and developing nations. Whilst growth finally returned to the US in the third quarter of …

Third Quarter GDP Performance: The Return of Growth in Services

The latest GDP statistics are encouraging, nonetheless questions remain. For instance, to what extent is the economic recovery in Sri Lanka driven by fiscal expansion as opposed to underlying private sector demand? If this is the case, how sustainable is the recovery, given the need for curtailing fiscal expansion (due to for instance IMF Agreement targets)? Will post war private sector demand be able to compensate for reductions in public expenditure?