The inflation, which is, calculated as year-on-year percent change in general price level, is a combined effect of several types of price changes. The monetary authority tries to track that part of inflation, which can be effectively monitored and controlled using various monetary instruments....

The study exploits 2-digit level industry data for the period 1981-2004 to ascertain the interlinkage between a monetary policy shock and industry value added. Accordingly, we first estimate a Vector Auto Regression (VAR) model to ascertain the magnitude of a monetary policy shock on industrial...

The paper addresses the issue of monetary policy transmission through the banking sector in the presence of a bank capital regulation. A model of bank behavior is presented, which shows how a monetary policy shock affects both deposit and lending, in the short run (when equity capital is assumed...

The present paper examines the cyclicality of disputes in India. Using data on manufacturing sector at the 2-digit level for the period 1964-1997, the paper finds disputes to be pro-cyclical. The pro-cyclical effect was found to be numerically large in certain cases, even after controlling for...

The present paper examines the interaction between a bank and a development financial institution (DFIs) in a macroeconomic set-up both of whom can lend for working capital and investment finance purposes. Our analysis reveals that the reduction in the interest rate premium on bonds over the...