In the mainstream monetary policy consensus that prevailed prior to the global crisis, there was increasing de-emphasis on money and credit aggregates in the conduct of monetary policy, because of the overwhelming faith on the interest rate, both as an instrument of policy and as an indicator of...

Expectations of firms and households about the future trajectory of inflation tend to influence their current investment and consumption/saving decisions, and the price and wage-setting behaviour. By firmly anchoring inflation expectations, monetary policy can prevent a wage-price spiral and...

Post-COVID, supply shock-induced spike in inflation in India has spawned renewed research interest in assessing the extent to which inflation expectations are anchored to the inflation target, given its importance to securing price stability in the medium run. This article constructs a...

In India, there is a large divergence between CPI and WPI inflation trends in the past, wide dispersion in inflation across commodity groups within WPI, and significant volatility in headline WPI inflation under the influence of supply shocks, the statistical limitations of prices data have...