cover image: Inflation Targeting in India: A Further Assessment

Inflation Targeting in India: A Further Assessment

23 Aug 2024

Disclaimer: The findings, interpretations, and conclusions expressed in the paper are those of the authors and do not necessarily reflect the views of the Governing Body or Management of NCAER. [...] It was to provide forecasts of inflation for a period between six to eighteen months; the resolution adopted by the Committee; further details on the fourteenth day after every meeting of the MPC, including the minutes of the proceedings of the meeting; the vote and statement of each member of the MPC; and a document explaining steps to be taken to implement the decisions of the MPC. [...] Analyzing monthly data spanning the period 2009-2019, they find a significant decline in both lower- and upper-tail risks of inflation in the post-IT-adoption period, which they interpret as “add[ing] to the success story of the adoption of the IT framework in India in stabilizing CPI headline inflation.” Finally, Bhalla, Basin and Loungani (2023) compare the performance of inflation and growth in. [...] Inflation has declined since the adoption of IT, both compared to the preceding years and relative to the average inflation of the world and LMI. [...] For example, Asnani et al (2019) analyze the inflation expectations of households and find that inflation expectations have become better anchored during the inflation targeting period-- in particular, there is only limited spillover from food inflation to food and non-food inflation expectations in the inflation targeting period.15 The RBI has been conducting its Inflation Expectations Survey of.

Authors

Poonam Gupta

Related Organizations

Bank for International Settlements
Tata Institute of Fundamental Research
University of California, Berkeley
Pages
33
Published in
India

Table of Contents