Inflation Volatility and the Inflation-Growth Tradeoff in India
AbstractThis paper amends the New Keynesian Phillips curve model to include inflation volatility and tests the determinants of such volatility for India. It provides results on the determinants of inflation volatility and expected inflation volatility for OLS and ARDL (1,1) models and for change in inflation volatility and change in expected inflation volatility using ECM models. Output gap affects change in expected inflation volatility along (in the ECM model) and not in the other models. Major determinants of inflation volatility and expected inflation volatility are identified.
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Bibliographic InfoPaper provided by Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University in its series CAMA Working Papers with number 2012-54.
Length: 19 pages
Date of creation: Dec 2012
Date of revision:
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Web page: http://cama.crawford.anu.edu.au
More information through EDIRC
Inflation; Inflation volatility; ARDL model; ECM model; Output gap; India;
Other versions of this item:
- Raghbendra Jha & Varsha S. Kulkarni, 2012. "Inflation Volatility and the Inflation-Growth Tradeoff in India," ASARC Working Papers 2012-11, The Australian National University, Australia South Asia Research Centre.
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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