Price transmission is theoretically examined and how exogenous consumer price shocks (triggered for instance by income changes, global shocks, or by changes in consumer preferences) are transmitted to producer prices, taking into account the particular nature and institutional characteristics of...

Using information on listed firms in each of the industry groups at the two-digit level within Manufacturing this study investigates whether the radical shift in trade policy in India in 1991 resulted in a reduction in market power and/or an improvement in scale efficiency. They estimate a...

When analyzing the appropriate response for monetary policy during a currency crisis it is important to keep in mind two distinct channels: (a) the impact of raising interest rates on exchange rates; and (b) the direct impact of exchange rate changes on output. The first pertains to the monetary...

The sovereign debt problems in the peripheral economies of the euro zone has started to pose a serious threat to the main economies of the Europe and perhaps to the future of the 'euro‘ itself. Such a situation is a far cry from the optimism and grand vision that marked its launch. This...

One of the methods of measuring the effectiveness of monetary policies is via inspection of monetary neutrality in the economy. It is a concept from classical economics and it suggests that changes in nominal variables do not have any impact on real variables. This paper studies the presence or...

Traditional explanations for trade misinvoicing -- high custom duties and weak domestic economies — are less persuasive in a world of high growth emerging markets who have low trade barriers. A 35- country data set over a 26 year span, covering both industrialised and developing...

Budget 2009-2010 by Pranab Mukherjee

The repo rate has been kept unchanged at 4.75%. The reverse repo rate left steady at 3.25%. The bank rate has been retained unchanged at 6.0%. The cash reserve ratio (CRR) of scheduled banks has been retained unchanged at 5% of their net demand and time liabilities (NDTL). Statutory liquidity...

A broad overview, from the Indian perspective, of the factors underlying the credit market crisis in the west, the implications of the crisis for the financial sector, lessons learnt from it, the various suggestions made at different fora for pre-empting the recurrence of such events, the Indian...