Alternative Monetary Policy Rules For India

Author : Michael Debabrata Patra,Muneesh Kapur
Publisher : International Monetary Fund
Page : 72 pages
File Size : 51,7 Mb
Release : 2012-05-01
Category : Business & Economics
ISBN : 9781475579871

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Alternative Monetary Policy Rules for India by Michael Debabrata Patra,Muneesh Kapur Pdf

This paper empirically evaluates the operational performance of the McCallum rule, the Taylor rule and hybrid rules in India over the period 1996-2011 using quarterly data, with a view to analytically informing the conduct of monetary policy. The results show that forward-looking formulations of both rules and their hybrid version - setting a nominal output growth objective for monetary policy with an interest rate instrument - outperform contemporaneous and backward-looking specifications, especially when targeting core components of GDP and inflation, and combine the best parts of efficiency and discretion.

Author : International Monetary Fund. Middle East and Central Asia Dept.
Publisher : International Monetary Fund
Page : 61 pages
File Size : 43,7 Mb
Release : 2017-05-09
Category : Business & Economics
ISBN : 9781475598759

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Republic of Kazakhstan by International Monetary Fund. Middle East and Central Asia Dept. Pdf

This Selected Issues Paper evaluates Kazakhstan’s oil rules, current fiscal stance, and long-term sustainability. The sharp and sustained drop in oil prices since 2014 has reduced the value of Kazakhstan’s oil wealth. Kazakhstan’s non-oil deficit path has been higher than suggested by long-term benchmarks, and adjustment is needed in the coming years to avoid fiscal sustainability risks and to promote intergenerational equity. Price-based fiscal rules can help anchor short- and medium-term fiscal policy. The non-oil deficit path introduced in the new National Fund of the Republic of Kazakhstan concept is broadly consistent with the proposed approach and should be followed by timely and decisive implementation of revenue and expenditure measures.

Author : Mr.Sohrab Rafiq
Publisher : International Monetary Fund
Page : 28 pages
File Size : 44,8 Mb
Release : 2015-11-09
Category : Business & Economics
ISBN : 9781513522371

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Monetary Policy Transmission and Financial Stability in a LIC by Mr.Sohrab Rafiq Pdf

This paper explores how monetary policy affects the real economy and its efficacy in promoting financial stability in a large low income country. This paper shows that monetary policy modestly impacts real economic activity and inflation via the bank lending and financial accelerator channels. Second, money market and treasury rates signal changes in the policy stance, while altering banks’ intermediation cost curves due to shifting risk premia. At the same time, evidence points to monetary policy inducing an overshooting in asset prices. These findings suggest that financial stability could be undermined if the calibration of monetary policy is based solely on output and inflation without accounting for the stage of the financial cycle. Finally, the paper discusses policy measures that would enhance the transmission of monetary policy and promote financial stability in Bangladesh.

Author : Mr.Jaromir Benes,Kevin Clinton,Asish George,Pranav Gupta,Joice John,Ondra Kamenik,Mr.Douglas Laxton,Pratik Mitra,G.V. Nadhanael,Rafael Portillo,Hou Wang,Fan Zhang
Publisher : International Monetary Fund
Page : 41 pages
File Size : 53,7 Mb
Release : 2017-02-13
Category : Business & Economics
ISBN : 9781475578706

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Quarterly Projection Model for India by Mr.Jaromir Benes,Kevin Clinton,Asish George,Pranav Gupta,Joice John,Ondra Kamenik,Mr.Douglas Laxton,Pratik Mitra,G.V. Nadhanael,Rafael Portillo,Hou Wang,Fan Zhang Pdf

This paper outlines the key features of the production version of the quarterly projection model (QPM), which is a forward-looking open-economy gap model, calibrated to represent the Indian case, for generating forecasts and risk assessment as well as conducting policy analysis. QPM incorporates several India-specific features like the importance of the agricultural sector and food prices in the inflation process; features of monetary policy transmission and implications of an endogenous credibility process for monetary policy formulation. The paper also describes key properties and historical decompositions of some important macroeconomic variables.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 74 pages
File Size : 53,7 Mb
Release : 2015-10-23
Category : Business & Economics
ISBN : 9781498344067

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Evolving Monetary Policy Frameworks in Low-Income and Other Developing Countries by International Monetary Fund Pdf

Over the past two decades, many low- and lower-middle income countries (LLMICs) have improved control over fiscal policy, liberalized and deepened financial markets, and stabilized inflation at moderate levels. Monetary policy frameworks that have helped achieve these ends are being challenged by continued financial development and increased exposure to global capital markets. Many policymakers aspire to move beyond the basics of stability to implement monetary policy frameworks that better anchor inflation and promote macroeconomic stability and growth. Many of these LLMICs are thus considering and implementing improvements to their monetary policy frameworks. The recent successes of some LLMICs and the experiences of emerging and advanced economies, both early in their policy modernization process and following the global financial crisis, are valuable in identifying desirable features of such frameworks. This paper draws on those lessons to provide guidance on key elements of effective monetary policy frameworks for LLMICs.

Author : Chetan Ghate,Kenneth M. Kletzer
Publisher : Springer
Page : 652 pages
File Size : 48,9 Mb
Release : 2016-11-25
Category : Business & Economics
ISBN : 9788132228400

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Monetary Policy in India by Chetan Ghate,Kenneth M. Kletzer Pdf

This book presents research that applies contemporary monetary theory and state-of-the-art econometric methods to the analysis of the monetary and financial aspects of the Indian economy and the impact of monetary policy on economic performance. Indian monetary policy has attracted significant attention from Indian and international macroeconomists over the last several years. Interest in how monetary policy influences economic performance and how monetary policy is conducted in India is growing. The prospects for further financial sector reform and ongoing inflation in India have sparked new interest in the role of money and monetary policy in India among economists, policy makers and students alike. The book should also interest economists outside India because it studies monetary economics in a major emerging market economy and makes advances in the analysis of how financial market imperfections and structural constraints influence the effects of monetary policy.

Author : Editors : Raj Kapila & Uma Kapila
Publisher : Academic Foundation
Page : 328 pages
File Size : 49,6 Mb
Release : 2001
Category : Electronic
ISBN : 8171882323

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Economic Developments In India : Monthly Update, Volume -43 Analysis, Reports, Policy Documents by Editors : Raj Kapila & Uma Kapila Pdf

Author : International Monetary Fund. Research Dept.
Publisher : International Monetary Fund
Page : 17 pages
File Size : 52,6 Mb
Release : 2012-09-21
Category : Business & Economics
ISBN : 9781475510683

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IMF Research Bulletin, September 2012 by International Monetary Fund. Research Dept. Pdf

The research summaries in the September 2012 issue of the IMF Research Bulletin are "Surges in Capital Flows: Why History Repeats Itself" (by Mahvash S. Qureshi) and "The LIC-BRIC Linkage: Growth Spillovers" (by Issouf Samake, Yongzheng Yang, and Catherine Pattillo). The Q&A covers "Seven Questions on Monetary Transmission in Low-Income Countries" (by Prachi Mishra and Peter Montiel). "Conversations with a Visiting Scholar" features an interview with IMF Fellow Olivier Coibion. Also included in this issue are details on the IMF Fellowship Program, visiting scholars at the IMF, a listing of recently published IMF Working Papers and Staff Discussion Notes, and an announcement on IMF Economic Review's first Impact Factor.

Author : Raj Kapila,Uma Kapila
Publisher : Academic Foundation
Page : 444 pages
File Size : 51,8 Mb
Release : 2002
Category : Business & Economics
ISBN : 8171882668

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India's Economy in the 21st Century by Raj Kapila,Uma Kapila Pdf

This Second Revised And Enlarged Edition: 2002 Provides A Good Insight Into The Current State Of Indian Economy, Highlighting The Challenges Of The Growth Process And Opportunities Covering The Areas Of The Economy, Banking And Finance, Agriculture, Industry And Infrastructure And The External Sectory.

Author : Dilip M. Nachane
Publisher : Springer
Page : 407 pages
File Size : 55,7 Mb
Release : 2018-11-02
Category : Business & Economics
ISBN : 9788132239208

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Critique of the New Consensus Macroeconomics and Implications for India by Dilip M. Nachane Pdf

The thought-provoking book presents alternative viewpoints to mainstream macroeconomic theory, questions conventional policy wisdom and suggests a systematic re-orientation of current macroeconomic and financial regulatory policies in India. The New Consensus Macroeconomics (NCM), which established itself in the 1980s as mainstream macroeconomics, essentially represents an “uneasy truce” between two dominant schools of economic thought viz. New Classical and Neo-Keynesian economics. The NCM sets the tone for much of the macroeconomic (especially monetary) policy followed by the advanced economies in the period of the Great Moderation (1990–2005). The recent global crisis has posed a major challenge to the NCM as empirical models based on the NCM failed to anticipate the occurrence of the crisis and later its extent and severity. The above considerations constitute the underpinnings of this book, which addresses the theoretical controversies within a general context and their policy implications for India. The authors’ analysis leads to a somewhat critical assessment of the financial sector policies followed in India since the initiation of reforms in 1991. This makes the book a valuable resource not only for researchers working in this area, but also for policy makers.

Author : Board of Governors of the Federal Reserve System
Publisher : Unknown
Page : 0 pages
File Size : 45,6 Mb
Release : 2002
Category : Banks and Banking
ISBN : 0894991965

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The Federal Reserve System Purposes and Functions by Board of Governors of the Federal Reserve System Pdf

Provides an in-depth overview of the Federal Reserve System, including information about monetary policy and the economy, the Federal Reserve in the international sphere, supervision and regulation, consumer and community affairs and services offered by Reserve Banks. Contains several appendixes, including a brief explanation of Federal Reserve regulations, a glossary of terms, and a list of additional publications.

Author : Ms.Prachi Mishra,Mr.Peter J Montiel,Rajeswari Sengupta
Publisher : International Monetary Fund
Page : 68 pages
File Size : 49,5 Mb
Release : 2016-09-07
Category : Business & Economics
ISBN : 9781475533569

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Monetary Transmission in Developing Countries by Ms.Prachi Mishra,Mr.Peter J Montiel,Rajeswari Sengupta Pdf

We examine the strength of monetary transmission in India, using a conventional structural VAR methodology. We find that a tightening of monetary policy is associated with a significant increase in bank lending rates and conventional effects on the exchange rate, though pass-through to lending rates is only partial and exchange rate effects are weak. We could find no significant effects on real output or the inflation rate. Though the message for the effectiveness of monetary transmission in India is therefore mixed, our results for India are more favorable than is often found for other developing countries.

Author : Shekhar Shah,Barry Bosworth,Arvind Panagariya
Publisher : SAGE Publications Pvt. Limited
Page : 372 pages
File Size : 54,5 Mb
Release : 2014-08-28
Category : Business & Economics
ISBN : 9351500551

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India Policy Forum 2013-14 by Shekhar Shah,Barry Bosworth,Arvind Panagariya Pdf

The India Policy Forum (IPF) is organized by the National Council of Applied Economic Research (NCAER) in New Delhi in partnership with the Brookings Institution, Washington, D.C. It aims to examine India’s economic reforms and its economic transition using policy-relevant empirical research. The IPF comprises an annual international conference in July in New Delhi and the IPF Volume that brings together the conference papers. These papers undergo detailed revisions after the conference based on discussants’ comments at the IPF and the guidance provided by the editors. The IPF is guided by distinguished international advisory and research panels. The first paper in this 2013 IPF Volume evaluates the impact of laws governing the operation of India’s labour market within the organized industrial sector. The next paper analyzes India’s role in the rapid development of international production networks. The third paper examines the conduct of Indian monetary policy since the onset of the global financial crisis, focusing on the persistent high rates of inflation in India. The fourth paper provides an overview of fiscal and monetary policies in the years after the financial crisis. The volume concludes with an assessment of the value of social audits, widely advocated as a tool for improving public accountability, in the MGNREGA program in Andhra Pradesh. The annual IPF Volume is globally the most cited collection of articles on India and should be useful to researchers and policy-makers in economics and political economy.

Author : Warren L. Coats,Deena R. Khatkhate
Publisher : Elsevier
Page : 842 pages
File Size : 54,7 Mb
Release : 2014-05-19
Category : Business & Economics
ISBN : 9781483157306

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Money and Monetary Policy in Less Developed Countries by Warren L. Coats,Deena R. Khatkhate Pdf

Money and Monetary Policy in Less Developed Countries: A Survey of Issues and Evidence focuses on monetary policy, the financial intermediation process, and the role of money in economic development in less developed countries (LDCs). Topics covered include financial development and economic growth in underdeveloped countries; instruments and techniques used in the implementation of monetary policy: and econometric policy models. This book is comprised of 46 chapters and begins with a discussion on the main lines of thought in the field of money and monetary policy in LDCs, with emphasis on the significant empirical results. The reader is then introduced to the role of money in the development process; production and monetization in the subsistence sector; some aspects of financial policies and central banking in developing countries; and the efficacy of monetary rules for LDCs. The subsequent chapters explore monetary policy instruments such as interest rates, credit controls, and exchange rates; credit policy and the balance of payments in developing countries; and price and output behavior in the Indian economy from 1951 to 1973. A semiannual macroeconometric model of the Philippines for the period 1967-1976 is also described. This monograph will be a valuable resource for economists, economic policymakers, and central bankers as well as students.

Author : Mr.Paul R. Masson,Mr.Miguel A. Savastano,Mr.Sunil Sharma
Publisher : International Monetary Fund
Page : 54 pages
File Size : 50,7 Mb
Release : 1997-10-01
Category : Business & Economics
ISBN : 9781451855159

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The Scope for Inflation Targeting in Developing Countries by Mr.Paul R. Masson,Mr.Miguel A. Savastano,Mr.Sunil Sharma Pdf

Inflation targeting (IT) serves as monetary policy framework in several advanced economies, where it has enhanced policy transparency and accountability. The paper considers its wider applicability to developing countries. The prerequisites for a successful IT framework are identified as an ability to carry out an independent monetary policy (free of fiscal dominance or commitment to another nominal anchor, like the exchange rate) and a quantitative framework linking policy instruments to inflation. These prerequisites are largely absent among developing countries, though several of them could with some further institutional changes and an overriding commitment to low inflation make use of an IT framework.