IDEAS home Printed from https://ideas.repec.org/h/spr/prbchp/978-981-99-0197-5_19.html
   My bibliography  Save this book chapter

Relationship Between Inflation and Macroeconomic Variables During Pre- and Post-reform Period

In: Digital Economy Post COVID-19 Era

Author

Listed:
  • Indu Grewal

    (Narsee Monjee Institute of Management, SOL)

Abstract

This study examines the relationships between inflation and three macroeconomic indices using secondary data. Index of Import Prices (IMP), Index of Industrial Production (IIP) and money supply (MS), for India. The overall time period (from 1980 to 2016) was divided into three sub-periods: pre-reform period (1980–1990), post-reform period (1991–2000) and subsequent period (2001–2016). It emerged that the MS happens to be the crucial element for the shift in inflation (CPI) during overall period, followed by IMP. The IIP did not emerge as catalyst for inflation to decrease. The inflation, however, had some effects on IIP during pre- and post-reform periods, but this relationship was bidirectional during subsequent period. Similarly, the MS did not cause inflation during pre- and post-reform periods. Importantly, during first and second sub-periods, the causal effect of imports on inflation did not appear. During subsequent period, the economy felt the heat of imported inflation.

Suggested Citation

  • Indu Grewal, 2023. "Relationship Between Inflation and Macroeconomic Variables During Pre- and Post-reform Period," Springer Proceedings in Business and Economics, in: Prashant Mishra & Ashu Sharma & Sayantan Khanra & Sumit K. Kundu & Sushanta Kumar Mishra (ed.), Digital Economy Post COVID-19 Era, chapter 0, pages 307-319, Springer.
    • Handle: RePEc:spr:prbchp:978-981-99-0197-5_19
    DOI: 10.1007/978-981-99-0197-5_19
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:spr:prbchp:978-981-99-0197-5_19. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.