Inflation Expectations and Monetary Policy in India : An Empirical Exploration /

This paper pursues a computationally intensive approach to generate future inflation, followed by an exploration of the determinants of inflation expectations by estimating a new Keynesian type Phillips curve that takes into account country-specific characteristics, the stance of monetary and fiscal...

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Detalles Bibliográficos
Autor principal: Patra, Michael
Otros Autores: Ray, Partha
Formato: Revista
Lenguaje:English
Publicado: Washington, D.C. : International Monetary Fund, 2010.
Colección:IMF Working Papers; Working Paper ; No. 2010/084
Acceso en línea:Full text available on IMF
Descripción
Sumario:This paper pursues a computationally intensive approach to generate future inflation, followed by an exploration of the determinants of inflation expectations by estimating a new Keynesian type Phillips curve that takes into account country-specific characteristics, the stance of monetary and fiscal policies, marginal costs and exogenous supply shocks. The empirical results indicate that high and climbing inflation could easily seep into people's anticipation of future inflation and linger. There is a reputational bonus for monetary policy to act against inflation now rather than going for cold turkey when societal compulsions reach a critical mass.
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Descripción Física:1 online resource (26 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acceso:Electronic access restricted to authorized BRAC University faculty, staff and students