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Impact of Monetary Policy Transmission on the Demographic in India - A Structural VAR Approach

Author

Listed:
  • Pabitra Kumar Jena
  • Raghav Sharma
  • Tania Dehury
  • Sasmita Nayak

    (School of Economics, Shri Mata Vaishno Devi University, Katra, India)

Abstract

This study explores the relationship between monetary policy instruments and India’s demographic structure, to understand how these instruments interact with the population composition. To trace the relationship, this study has considered annual data from 1993-2018. Using the structural vector autoregression (VAR) with restrictions and considering various macroeconomic variables, the study shows a significant relationship between the monetary policy variable represented by the repo rate and the demographic structure represented by the working-age population. Overall, the study concludes that demographic shifts affect monetary policy effectiveness.

Suggested Citation

  • Pabitra Kumar Jena & Raghav Sharma & Tania Dehury & Sasmita Nayak, 2024. "Impact of Monetary Policy Transmission on the Demographic in India - A Structural VAR Approach," Asian Economics Letters, Asia-Pacific Applied Economics Association, vol. 4(3), pages 1-5.
    • Handle: RePEc:ayb:jrnael:109
    DOI: 2024/07/01
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    References listed on IDEAS

    as
    1. Andrew K. Rose & Saktiandi Supaat & Jacob Braude, 2009. "Fertility and the real exchange rate," Canadian Journal of Economics, Canadian Economics Association, vol. 42(2), pages 496-518, May.
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    More about this item

    Keywords

    Monetary policy; Transmission; Structural VAR; Demographic;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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