A Note on the Choice of Appropriate Index of Inflation for India
5 Pages Posted: 16 Jul 2008
Date Written: July 16, 2008
Abstract
Inflation targeting requires appropriately defined price index - be it wholesale price index or consumer price index. For an open emerging economy like India, where inflation targeting may not be the sole objective of the monetary authority, interrelation among the measures of inflation, economic growth, money supply and exchange rate is also important. The VAR analysis indicates that this interrelation is stronger for the wholesale price index in case of India.
Keywords: inflation targeting, price index, VAR analysis
JEL Classification: E31, E52
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Monetary Policy and Asset Price Volatility
By Ben S. Bernanke and Mark Gertler
-
Asset Prices, Financial and Monetary Stability: Exploring the Nexus
-
Boom-Busts in Asset Prices, Economic Instability, and Monetary Policy
By Michael D. Bordo and Olivier Jeanne
-
Boom-Busts in Asset Prices, Economic Instability and Monetary Policy
By Michael D. Bordo and Olivier Jeanne
-
Whither Monetary and Financial Stability? The Implications of Evolving Policy Regimes
-
U.S. Stock Market Crashes and Their Aftermath: Implications for Monetary Policy
-
Credit Booms Gone Bust: Monetary Policy, Leverage Cycles and Financial Crises, 1870-2008
By Moritz Schularick and Alan M. Taylor
-
Credit Booms Gone Bust: Monetary Policy, Leverage Cycles and Financial Crises, 1870-2008
By Moritz Schularick and Alan M. Taylor
-
Securing Sustainable Price Stability: Should Credit Come Back from the Wilderness?