Inflation-forecast targeting for India : an outline of the analytical framework /

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Bibliographic Details
Imprint:	[Washington, District of Columbia] : International Monetary Fund, 2017. ©2017
Description:	1 online resource (38 pages) : illustrations (some color), charts, tables, graphs.
Language:	English
Series:	IMF working paper ; WP/17/32 IMF working paper ; WP/17/32.
Subject:	Inflation (Finance) -- India. Banks and banking -- India. Banks and banking. Inflation (Finance) India.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/11705149

Hidden Bibliographic Details
Other authors / contributors:	Benes, Jaromir, author.
ISBN:	1475584342 9781475584349 1475578695 9781475578690
Digital file characteristics:	data file
Summary:	India formally adopted flexible inflation targeting (FIT) in June 2016 to place price stability, defined in terms of a target CPI inflation, as the primary objective of monetary policy. In this context, the paper draws on Indian macroeconomic developments since 2000 and the experience of other countries that adopted FIT to bring out insights on how credible policy with an emphasis on a strong nominal anchor can reduce the impact of supply shocks and improve macroeconomic stability. For illustrating the key issues given the unique structural characteristics of India and the policy options under an FIT framework, the paper describes an analytical framework using the core quarterly projection model (QPM). Simulations of the QPM are carried out to illustrate the monetary policy responses under different types of uncertainty and to bring out the importance of gaining credibility for improving monetary policy efficacy.
Standard no.:	10.5089/9781475578690.001

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