RBI faces dilemma from US policy spillovers – BIS paper

RBI

Monetary policy-makers in India face a dilemma in responding to the impact of spillovers from US monetary policy, a working paper published by the Bank for International Settlements finds.

Shesadri Banerjee and Madhusudan Mohanty study micro-level data on the “financial channel” of the exchange rate. Non-financial firms in India increasingly borrow in US dollars. This can mean that a depreciation of the rupee, triggered by a tightening of policy in the US, is contractionary for India.

Banerjee

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 copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: