Why persistent high inflation impedes growth? An empirical assessment of threshold level of inflation for India
In the policy debate on growth--inflation trade-off and the role of monetary policy in managing the trade-off in the short-run, theoretical and empirical research suggests the presence of a country specific threshold level of inflation. Empirical findings of this paper suggest that for India the threshold level of inflation could be around 6%. The inflation target for monetary policy may have to be somewhat lower than the growth maximizing threshold, since any positive inflation could be a risk to inclusive and sustainable growth objective.
Year of publication: |
2013
|
---|---|
Authors: | Pattanaik, Sitikantha ; Nadhanael, G.V. |
Published in: |
Macroeconomics and Finance in Emerging Market Economies. - Taylor & Francis Journals, ISSN 1752-0843. - Vol. 6.2013, 2, p. 204-220
|
Publisher: |
Taylor & Francis Journals |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Quarterly Projection Model for India : Key Elements and Properties
Beneš, Jaromír, (2017)
-
Inflation-Forecast Targeting for India : An Outline of the Analytical Framework
Beneš, Jaromír, (2017)
-
Inflation Expectations of Households: Do They Influence Wage-Price Dynamics in India?
Pattanaik, Sitikantha, (2019)
- More ...