What lowered inflation in India: monetary policy or commodity prices?

India has seen lower inflation by historical standards for the past 6 years. This has been attributed to the adoption of inflation targeting by the central bank, the Reserve Bank of India in 2016. In particular, it has been asserted that the lower inflation reflects the anchoring of expectations. We...

Descripción completa

Detalles Bibliográficos
Autores principales: Balakrishnan, Pulapre, Parameswaran, M.
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Springer India 2022
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9244015/
https://www.ncbi.nlm.nih.gov/pubmed/35789738
http://dx.doi.org/10.1007/s41775-022-00134-z
_version_ 1784738433513553920
author Balakrishnan, Pulapre
Parameswaran, M.
author_facet Balakrishnan, Pulapre
Parameswaran, M.
author_sort Balakrishnan, Pulapre
collection PubMed
description India has seen lower inflation by historical standards for the past 6 years. This has been attributed to the adoption of inflation targeting by the central bank, the Reserve Bank of India in 2016. In particular, it has been asserted that the lower inflation reflects the anchoring of expectations. We evaluate these claims. An econometric investigation indicates that there is no basis to the claim that inflation has been lowered due to the anchoring of expectations. On the other hand, we are able to account for the trajectory of inflation in India after 2016 in terms of an alternative explanation of inflation, namely the structuralist.
format Online
Article
Text
id pubmed-9244015
institution National Center for Biotechnology Information
language English
publishDate 2022
publisher Springer India
record_format MEDLINE/PubMed
spelling pubmed-92440152022-06-30 What lowered inflation in India: monetary policy or commodity prices? Balakrishnan, Pulapre Parameswaran, M. Indian Econ Rev Article India has seen lower inflation by historical standards for the past 6 years. This has been attributed to the adoption of inflation targeting by the central bank, the Reserve Bank of India in 2016. In particular, it has been asserted that the lower inflation reflects the anchoring of expectations. We evaluate these claims. An econometric investigation indicates that there is no basis to the claim that inflation has been lowered due to the anchoring of expectations. On the other hand, we are able to account for the trajectory of inflation in India after 2016 in terms of an alternative explanation of inflation, namely the structuralist. Springer India 2022-06-27 2022 /pmc/articles/PMC9244015/ /pubmed/35789738 http://dx.doi.org/10.1007/s41775-022-00134-z Text en © The Author(s) under exclusive licence to Editorial Office, Indian Economic Review 2022 This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic.
spellingShingle Article
Balakrishnan, Pulapre
Parameswaran, M.
What lowered inflation in India: monetary policy or commodity prices?
title What lowered inflation in India: monetary policy or commodity prices?
title_full What lowered inflation in India: monetary policy or commodity prices?
title_fullStr What lowered inflation in India: monetary policy or commodity prices?
title_full_unstemmed What lowered inflation in India: monetary policy or commodity prices?
title_short What lowered inflation in India: monetary policy or commodity prices?
title_sort what lowered inflation in india: monetary policy or commodity prices?
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9244015/
https://www.ncbi.nlm.nih.gov/pubmed/35789738
http://dx.doi.org/10.1007/s41775-022-00134-z
work_keys_str_mv AT balakrishnanpulapre whatloweredinflationinindiamonetarypolicyorcommodityprices
AT parameswaranm whatloweredinflationinindiamonetarypolicyorcommodityprices

Ejemplares similares