RBI paper finds monetary policy undermined by unsustainable deficits

Central Banking Newsdesk
27 Jul 2012

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

A working paper, published by the Reserve Bank of India (RBI) on July 26, studies the reasons behind high inflation in India despite tightening of monetary policy, suggesting the presence of a large government debt burden undermines the central bank's credibility.

Authors Pankaj Kumar and Pratik Mitra study monthly Indian inflation data over the period 1981–2011 to estimate the time-varying persistence of inflation. The paper identifies an upward trend in inflation persistence, accompanied by

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to print this content. Please contact [email protected] to find out more.

You are currently unable to copy this content. Please contact [email protected] to find out more.

You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]

You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]