FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post


ADVERTISE
Poll

EXCHANGE RATE PREDICTION: 2022

 
 
 
 

View results

ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» CARE 150 ++++++
by Stockbull Yesterday at 10:36 pm

» RAL UNTOLD STORY, KEEPING TOUCH
by vijay singh Yesterday at 8:36 pm

» Exterminators Plc (EXT.N)
by ErangaDS Yesterday at 5:18 pm

» LOOK- KZOO
by sureshot Yesterday at 2:51 pm

» THE NEXT OPPORTUNITY - GET IN
by sureshot Yesterday at 1:02 pm

» නිවැරදි වෙලාවට කොටස් මිලට ගත යුතුයි. Stock market for beginners
by D.G.Dayaratne Yesterday at 10:42 am

» KELANI VALLEY PLANTATIONS PLC (KVAL.N0000)
by hammurabi Yesterday at 10:05 am

» FCT.N & CFVF
by nish84 Fri Sep 23, 2022 2:16 pm

» Govt. invites LIOC to build refinery in Trincomalee
by samaritan Fri Sep 23, 2022 9:59 am

» India set to be world’s 3rd largest economy by 2030
by samaritan Fri Sep 23, 2022 9:21 am

» PRIME LANDS RESIDENCIES PLC (PLR.N0000)
by Nandana Withanage Fri Sep 23, 2022 12:26 am

» ACCESS ENGINEERING PLC (AEL.N0000)
by ddrperera Fri Sep 23, 2022 12:05 am

» CENTRAL INDUSTRIES PLC (CIND.N0000)
by K.R Thu Sep 22, 2022 11:33 pm

» Ishara Nanayakkara rally - Maharaja
by samaritan Thu Sep 22, 2022 5:51 pm

» RGEM :- RGEM is the Cheapest Illiquid Stock in the market
by skyfall Thu Sep 22, 2022 11:47 am

» CIC going to next level
by suku502 Thu Sep 22, 2022 10:34 am

» ACL CABLES PLC (ACL.N0000)
by ADVENTUS Thu Sep 22, 2022 12:48 am

» LALU -Aluminum KING
by Stockbull Wed Sep 21, 2022 8:15 pm

» KELANI CABLES PLC (KCAB.N0000)
by bkasun Wed Sep 21, 2022 5:27 pm

» RGEM. A real gem in the market
by skyfall Wed Sep 21, 2022 3:51 pm

EXPERT CHRONICLE™

MARKET CHAT


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » Central Bank’s Delayed Action

Central Bank’s Delayed Action

2 posters

Go down  Message [Page 1 of 1]

1Central Bank’s Delayed Action Empty Central Bank’s Delayed Action Thu Aug 26, 2021 1:56 am

CITIZEN

CITIZEN
Manager - Equity Analytics
Manager - Equity Analytics

At last, the Governor of Central Bank and his team of experts have come to realize the truth that excess money supply, either through printing currency or reducing interest rates, in the name of providing adequate liquidity to maintain aggregate demand in times of economic depression, has only a limited use. In general terms, the traditional tools of monetary policy have lost their bite long ago, when money itself has undergone a revolution in identity. With the onset of globalization, spurred by financialization of economic activities and facilitated by the electronic revolution in money market transactions, central banks have become virtually an anachronism. When an institution that is supposed to manage a country’s money supply, finds it difficult to define and identify what money is how could that institution control money supply? Even then, with its limited capacity to manage that supply and monitor money market activities, it can at least use its constitutionally accorded independence, to neutralize the damaging impacts of politically motivated economic policies of governments in power. When a central bank mortgages that independence and act as another administrative arm to carry out the diktats of an executive power then that bank loses its credibility also. This has what happened in the case of the Central Bank of Sri Lanka (CBSL). 
One should not forget in this context, the so-called discussion that CBSL governor and his colleagues had with President Gotabaya Rajapaksa (GR) soon after the present governor of the bank was appointed. The President was pointedly virtually dictating to the monetary authorities to assist in implementing “my”, i.e., GR’s economic policies. On that day, CBSL virtually lost its independence and literally became government’s bank. The pandemic provided a good opportunity to demonstrate its cooperation with GR and CBSL went to the printing machine and worked overtime to flood the market with currency. The inflationary effect of this exercise was casually ignored or deliberately minimized by subtracting food inflation from calculation.  Expenditure on food consumes the largest percentage in the income of a vast majority of ordinary householders. The exclusion of this item in the calculation of inflation is to camouflage the truth.  Moreover, investors know that the interest they earn on their bank deposits is lower than the prevailing inflation rate, and they will therefore park their savings beyond the reach of tax authorities. This means growth of a black economy. Didn’t CBSL itself encourage earlier owners of ill-gotten wealth lying abroad to be brought in without questions being asked?

2Central Bank’s Delayed Action Empty Re: Central Bank’s Delayed Action Thu Aug 26, 2021 11:08 am

D.G.Dayaratne


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

I think Central Bank has no other solution

Can it work independently under present circumstances?

Specialty  political-economic thinking
of the majority

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum