THE MACROECONOMIC FRAMEWORK FOR SRI LANKA NECESSITOUS
Posted on August 2nd, 2022

BY EDWARD THEOPHILUS

Financial assistance for Sri Lanka from international financial institutions has been conditioned to have a macroeconomic framework for the country. Although the macroeconomy is a broader area like a jungle as stated by R.G.D.Allen in his famous title Macroeconomics, many countries have developed their macroeconomic framework,   considering the vital structural factors of the framework, people have no understanding of this framework and there is a question of whether the policymakers have a clear understanding of the macroeconomic framework. The linkage of variables in the framework is vital and if policymakers are performing research on the linkage of variables government could maintain control of the economy that will become a managed economy.  

The factors related to the macroeconomic framework consist of factors that influence vary and it is significant the calculation of the real value of impact between variables for successful planning.  policymakers need clearly understand the factors and the ratio of influence of each factor. The role-playing related to this work might be difficult work. IMF also considers that low-income earners should be given subsidies and there should be a policy plan for the purpose. Before 1990 many Western countries were giving subsidies to low-income earning families but it was changed during the decade indirect forcing them to find employment.   

What are the variables related to the macroeconomic framework, I believe, population and growth, national income and growth, export revenue and growth, foreign exchange earning and growth, import expenses and growth, in this way many factors or variables need to identify and each variable must have a plan with strategies to control and maintain the stability.

Sri Lanka spends a large sum of money to maintain universities that offer many undergraduate and graduate programs, why is the government cannot use these trained people to maintain a successful macroeconomic framework?  

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