IDEAS home Printed from https://ideas.repec.org/p/ess/wpaper/id4481.html
   My bibliography  Save this paper

Understanding Inflation and Controlling It

Author

Listed:
  • Kaushik Basu
  • C Marks

Abstract

Inflation management is one of the hardest tasks an economic policymaker has to undertake. It appears, at first sight, that one can rely entirely on commonsense to carry out this task. But that will be a cardinal mistake. While inflation policy does require judgment and intuition, it is essential that these be backed up with statistical information and an understanding of economic theory. This paper tries to bring together the formal analytics that underlie inflation policy. It surveys some of the standard ideas and also questions some of these and, in the process, tries to push further outwards the frontiers of our understanding.

Suggested Citation

  • Kaushik Basu & C Marks, 2011. "Understanding Inflation and Controlling It," Working Papers id:4481, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:4481
    Note: Institutional Papers
    as

    Download full text from publisher

    File URL: http://www.esocialsciences.org/Download/repecDownload.aspx?fname=A201192895413_20.pdf&fcategory=Articles&AId=4481&fref=repec
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ashima Goyal & Shruti Tripathi, 2011. "New Keynesian aggregate supply in the tropics: food prices, wages and inflation," International Journal of Monetary Economics and Finance, Inderscience Enterprises Ltd, vol. 4(4), pages 330-354.
    2. Ankita Mishra & Ranjan Ray, 2011. "Prices, Inequality, And Poverty: Methodology And Indian Evidence," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(3), pages 428-448, September.
    3. Thomas J. Sargent, 1982. "The Ends of Four Big Inflations," NBER Chapters, in: Inflation: Causes and Effects, pages 41-98, National Bureau of Economic Research, Inc.
    4. Reetika Khera, 2011. "India's Public Distribution System: Utilisation and Impact," Journal of Development Studies, Taylor & Francis Journals, vol. 47(7), pages 1038-1060.
    5. Basu, Kaushik, 1992. "A geometry for non-Walrasian general equilibrium theory," Journal of Macroeconomics, Elsevier, vol. 14(1), pages 87-103.
    6. Robert E. Hall, 1982. "Inflation: Causes and Effects," NBER Books, National Bureau of Economic Research, Inc, number hall82-1, March.
    7. Reetika Khera, 2011. "Trends in Diversion of PDS Grain," Working Papers id:3793, eSocialSciences.
    8. Mishra, Prachi & Roy, Devesh, 2012. "Explaining Inflation in India: The Role of Food Prices," India Policy Forum, National Council of Applied Economic Research, vol. 8(1), pages 139-224.
    9. Robert E. Hall, 1982. "Introduction to "Inflation: Causes and Effects"," NBER Chapters, in: Inflation: Causes and Effects, pages 1-10, National Bureau of Economic Research, Inc.
    10. Ravindra H. Dholakia & Amey A. Sapre, 2012. "Speed of Adjustment and Inflation – Unemployment Tradeoff in Developing Countries – Case of India," Journal of Quantitative Economics, The Indian Econometric Society, vol. 10(1), pages 1-16, January.
    11. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jayatilleke S. Bandara, 2013. "What is Driving India’s Food Inflation? A Survey of Recent Evidence," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 14(1), pages 127-156, March.
    2. Nathan M. Mutwiri, 2017. "Monetary Policy Tools and Inflation in Kenya," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(1), pages 86-97, January.
    3. Chakrabarti, Anindya S., 2015. "Inflationary effects of monetary policies in newly industrialized economies with cross-sectoral labor and capital immobility," IIMA Working Papers WP2015-08-07, Indian Institute of Management Ahmedabad, Research and Publication Department.
    4. Mihir Dash & Gopi Pachetas, 2020. "Impact of macroeconomic factors on inflation: An assessment on indian economy by using vector auto-regressive modeling," International Journal of Decision Sciences & Applications (2528-956X), Center for the Strategic Studies in Business and Finance, vol. 1(1), pages 23-28, December.
    5. K. U. Gopakumar & Vishwanath Pandit, 2017. "Food inflation in India: protein products," Indian Economic Review, Springer, vol. 52(1), pages 157-179, December.
    6. Chakrabarti, Anindya S., 2016. "Inflationary effects of monetary policies in newly industrialized economies with cross-sectoral labor and capital immobility," Journal of Macroeconomics, Elsevier, vol. 50(C), pages 151-167.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Akhand Akhtar Hossain, 2009. "Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 12777.
    2. repec:hal:spmain:info:hdl:2441/6982 is not listed on IDEAS
    3. Marc Bassoni & André Cartapanis, 1995. "Autonomie des banques centrales et performances macro-économiques : Un réexamen," Revue Économique, Programme National Persée, vol. 46(2), pages 415-432.
    4. Jérôme Sgard, 1998. "Inflation, stabilisation et prix relatifs en Argentine et au Brésil," Post-Print hal-03585833, HAL.
    5. Cinquetti, Carlos A., 2000. "The Real Plan: Stabilization and Destabilization," World Development, Elsevier, vol. 28(1), pages 155-171, January.
    6. Jérôme Sgard, 1998. "Inflation, stabilisation et prix relatifs en Argentine et au Brésil : l'expérience des années quatre-vingt-dix," Revue Économique, Programme National Persée, vol. 49(1), pages 239-256.
    7. Jérôme Sgard, 1998. "Inflation, stabilisation et prix relatifs en Argentine et au Brésil," SciencePo Working papers Main hal-03585833, HAL.
    8. Jérôme Sgard, 1998. "Inflation, stabilisation et prix relatifs en Argentine et au Brésil: L'expérience des années quatre-vingt-dix," Sciences Po publications info:hdl:2441/6982, Sciences Po.
    9. Bordo, Michael D., 1986. "Explorations in monetary history: A survey of the literature," Explorations in Economic History, Elsevier, vol. 23(4), pages 339-415, October.
    10. Peter Carr & Travis Fisher & Johannes Ruf, 2014. "On the hedging of options on exploding exchange rates," Finance and Stochastics, Springer, vol. 18(1), pages 115-144, January.
    11. Boschen, John F. & Weise, Charles L., 2004. "Does the dynamic time consistency model of inflation explain cross-country differences in inflations dynamics?," Journal of International Money and Finance, Elsevier, vol. 23(5), pages 735-759, September.
    12. Henry, Peter B., 2000. "Is Disinflation Good for Growth?," Research Papers 1657, Stanford University, Graduate School of Business.
    13. Williamson, Stephen D., 2018. "Can the fiscal authority constrain the central bank?," Journal of Economic Dynamics and Control, Elsevier, vol. 89(C), pages 154-172.
    14. Makoto Saito, 2021. "Central Banknotes and Black Markets: The Case of the Japanese Economy During and Immediately After World War II," Advances in Japanese Business and Economics, in: Strong Money Demand in Financing War and Peace, pages 25-56, Springer.
    15. Emilio Ocampo, 2021. "A Brief History of Hyperinflation in Argentina," CEMA Working Papers: Serie Documentos de Trabajo. 787, Universidad del CEMA.
    16. Gundlach, Erich, 1987. "Währungsreform und wirtschaftliche Entwicklung: Westdeutschland 1948," Kiel Working Papers 286, Kiel Institute for the World Economy (IfW Kiel).
    17. Sudha Narayanan Narayanan & Nicolas Gerber, 2016. "Safety Nets for Food and Nutritional Security in India," FOODSECURE Working papers 37, LEI Wageningen UR.
    18. Eric Tremolada Álvarez (editor), 2015. "La arquitectura del ordenamiento internacional y su desarrollo en materia económica," Books, Universidad Externado de Colombia, Facultad de Derecho, edition 1, number 785, December.
    19. Sudha Narayanan & Nicolas Gerber, 2015. "Social safety nets for food and nutritional security in India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2015-031, Indira Gandhi Institute of Development Research, Mumbai, India.
    20. Sproul, Michael, 2018. "The Real Meaning of the real Bills Doctrine," MPRA Paper 87608, University Library of Munich, Germany.
    21. Montes, Gabriel Caldas & Curi, Alexandre, 2017. "Disagreement in expectations about public debt, monetary policy credibility and inflation risk premium," Journal of Economics and Business, Elsevier, vol. 93(C), pages 46-61.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ess:wpaper:id:4481. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Padma Prakash (email available below). General contact details of provider: http://www.esocialsciences.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.