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Tag Search: “monetary policy”

An illusory Phillips curve: Is now the right time for a rate hike?

The Phillips curve represents an inverse relationship between inflation and unemployment. In this post, Parantap Basu argues that the ‘illusory’ Phillips curve in western industrial nations is driven ...

  • Perspectives

International financial architecture and emerging economies

Policy responses to Covid-19 have been a mix of fiscal and monetary policy – with the latter doing the heavy-lifting in both developed and developing countries. Against this backdrop, in this edition ...

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International financial architecture and emerging economies

Policy responses to Covid-19 have been a mix of fiscal and monetary policy – with the latter doing the heavy-lifting in both developed and developing countries. Against this backdrop, in this edition ...

  • Podcasts

How do RBI’s actions (and words) affect financial markets?

Financial markets in developed countries are known to react substantially to monetary shocks, that is, surprise changes in policy rates announced by the central bank. Based on a narrative analysis of ...

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Budget 2022-23 and outlook for the Indian economy

Several commentators have lauded the recently presented Budget 2022-23 as a ‘growth budget’, on account of the large allocations made for capital expenditure on public infrastructure. On the other han...

  • Podcasts

Budget 2022-23 and outlook for the Indian economy

Several commentators have lauded the recently presented Budget 2022-23 as a ‘growth budget’, on account of the large allocations made for capital expenditure on public infrastructure. On the other han...

  • Videos

Mind the tone: Text analysis of Monetary Policy Committee statements

Government of India appoints three external members on the six-member Monetary Policy Committee, and the statements of all MPC members are released after every committee meeting. Based on data from 30...

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Understanding ‘consumer price index’ and consumption baskets

The Consumer Price Index (CPI) is used as an indicator in various policymaking contexts, and has gained greater significance since the adoption of the inflation targeting framework in India. In this p...

  • Perspectives

Understanding the dynamics of the rupee-dollar exchange rate

Since 1993, the Indian rupee (INR) has officially been following a market-determined exchange rate – price is determined by demand for and supply of foreign exchange – with intervention by the Reserve...

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From abundant global liquidity to selective lending: How corporate finance has changed

Global credit has experienced significant changes in the last two decades. Analysing data on 1,160 Indian firms for the 2000-2017 period, this article shows that in the period following the global fin...

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Of twists and turns: Monetary policy and ‘term premium’

As India’s economic growth slowed down in recent years, the reliance on monetary policy to stimulate growth increased significantly – especially during the pandemic. Analysing data from 2018-2020, Raj...

  • Perspectives

Inflation targeting in India: An interim assessment

Inflation targeting in India is a work-in-progress, with a five-year review due by March 2021. This article presents an interim assessment suggesting that significant progress has already been achieve...

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