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Sargam Gupta
Sargam Gupta is a fourth year Ph.D. student at Indian Statistical Institute, Delhi Centre. She did her Masters in Economics from Centre for Economic Studies and Planning, Jawaharlal Nehru University and undergraduation from Delhi University. Her areas of research interest are macroeconomics and monetaryeconomics.
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Terms of trade shocks and monetary policy in India
Understanding monetary policy design in emerging markets and developing economies is a growing area of research. One aspect that is missing is how distortions in the agricultural sector translate into output and inflation dynamics, and the implications this has for setting monetary policy.
Are grain procurement shocks inflationary?
Central banks in emerging markets grapple with understanding the inflationary impact of grain procurement shocks because the precise link between the agriculture sector and the rest of the economy may not be well understood. This column presents a framework to understand how the government’s grain procurement policy in India can be inflationary, and what the appropriate monetary policy response should be.