Purpose – In this paper, six forms of non-linear Taylor rule have been applied to compare the fitting and prediction of response function of monetary policy of China, in an attempt to figure out a form of non-linear Taylor rule that accords with Chinese practices. The paper aims to discuss...

Purpose – The purpose of this paper is to explore whether India is a suitable candidate for an inflation targeting regime. It begins by placing India's monetary policy actions in a broader context by discussing whether the Reserve Bank of India (RBI) should shift from its current policy of...

Purpose – The purpose of this paper is to investigate inflation convergence within the East African Community (EAC) as it aspires to become a currency union. Design/methodology/approach – An unobserved dynamic factor model was used to decompose the variation in inflation into a component...

Purpose – The purpose of this paper is to develop a political‐economy model to show how political imperatives lead to reforms in administering direct tax collection. Design/methodology/approach – A static, political‐gain approach was used to model employment in the tax collection sector...

Purpose – The purpose of this paper is to analyse the implications of sharply rising food prices for monetary policy in India and similar emerging economies at present. Design/methodology/approach – This paper uses analytical arguments from relevant macroeconomic literature and evidence from...

Purpose – Indian monetary policy performed reasonably well in the past, while both strategy and operational framework were evolving on par with domestic financial and monetary markets. The purpose of this paper is to document how this good track record came to an abrupt stop in recent years as...

Purpose – In the past two decades, there has been a remarkable decline in inflation in both developed and developing countries, in sharp contrast to the period immediately preceding it. Interestingly, the behaviour of inflation in India broadly exhibits such a pattern. For much of the 1970s...

Purpose – The purpose of this paper is to describe the transformation of macro‐modelling from reduced form behavioural equations estimated separately, through to contemporary microfounded dynamic stochastic general equilibrium (DSGE) models estimated by systems methods. It is argued that...

Purpose – The purpose of this paper is to examine the effects of monetary policy on economic activity using a plethora of hitherto unemployed financial dynamics in inflation-chaotic African countries for the period of 1987-2010.Although in developed economies, changes in monetary policy affect...

Purpose – The purpose of this paper is to compare and contrast the effectiveness of monetary policy in boosting the housing sectors in each of Egypt and South Africa, and to detect the ability of the monetary agents of both nations to tame house prices. Design/methodology/approach – An...