Download or read book An Estimated Model with Macrofinancial Linkages for India written by Mr.Magnus Saxegaard and published by International Monetary Fund. This book was released on 2010-01-01 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops a small open economy dynamic stochastic general-equilibrium model with macrofinancial linkages. The model includes a financial accelerator--entrepreneurs are assumed to partially finance investment using domestic and foreign currency debt--to assess the importance of financial frictions in the amplification and propagation of the effects of transitory shocks. We use Bayesian estimation techniques to estimate the model using India data. The model is used to assess the importance of the financial accelerator in India and the optimality of monetary policy.

Download or read book India written by International Monetary Fund and published by International Monetary Fund. This book was released on 2010-03-23 with total page 74 pages. Available in PDF, EPUB and Kindle. Book excerpt: This 2009 Article IV Consultation highlights that India’s medium-term growth prospects remain bright. Prompt fiscal and monetary easing, combined with the fiscal stimulus already in the pipeline and the return of risk appetite in financial markets, have brought growth close to pre-crisis levels. Risks to a favorable outlook stem primarily from difficulties in implementing productivity-enhancing reforms and continued supply bottlenecks. Executive Directors have congratulated the authorities on their strong record of sound macroeconomic policies and decisive actions leading to India’s early and vigorous recovery from the global crisis.

Download or read book Capital Flows Financial Intermediation and Macroprudential Policies written by Matteo Ghilardi and published by International Monetary Fund. This book was released on 2014-08-21 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops an open-economy DSGE model with an optimizing banking sector to assess the role of capital flows, macro-financial linkages, and macroprudential policies in emerging Asia. The key result is that macro-prudential measures can usefully complement monetary policy. Countercyclical macroprudential polices can help reduce macroeconomic volatility and enhance welfare. The results also demonstrate the importance of capital flows and financial stability for business cycle fluctuations as well as the role of supply side financial accelerator effects in the amplification and propagation of shocks.

Download or read book Financial Integration and Macrofinancial Linkages in Asia written by Asian Development Bank and published by Asian Development Bank. This book was released on 2020-10-01 with total page 120 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Asian financial landscape has grown more interconnected over the past 2 decades. Previous financial crises have shown how financial volatility can transmit rapidly across an interconnected financial network. Empirical analyses have shown, moreover, how financial volatility can reverberate across the macroeconomy. This report summarizes the lessons from past crises, reviews the evidence of the macrofinancial linkages and feedback effects of financial distress, and proposes policy considerations and coordinated responses to enhance financial stability and resilience.

Download or read book Policy Analysis and Forecasting in the World Economy written by Francis Vitek and published by International Monetary Fund. This book was released on 2012-06-01 with total page 77 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops a structural macroeconometric model of the world economy, disaggregated into thirty five national economies. This panel unobserved components model features a monetary transmission mechanism, a fiscal transmission mechanism, and extensive macrofinancial linkages, both within and across economies. A variety of monetary policy analysis, fiscal policy analysis, spillover analysis, and forecasting applications of the estimated model are demonstrated, based on a Bayesian framework for conditioning on judgment.

Download or read book Dealing with the Challenges of Macro Financial Linkages in Emerging Markets written by Otaviano Canuto and published by World Bank Publications. This book was released on 2013-10-29 with total page 307 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book deals with the challenges of macro financial linkages in the emerging markets.

Download or read book India s Financial System written by Mr. Alfred Schipke and published by International Monetary Fund. This book was released on 2023-07-06 with total page 290 pages. Available in PDF, EPUB and Kindle. Book excerpt: India has experienced a prolonged period of strong economic growth since it embarked on major structural reforms and economic liberalization in 1991, with real GDP growth averaging about 6.6 percent during 1991–2019. Millions have been lifted out of poverty. With a population of 1.4 billion and about 7 percent of the world economic output (in purchasing power parity terms), India is the third largest economy—after the US and China. As such, developments in India have significant global and regional implications, including via spillovers through international trade and global supply chains. At the same time, India’s economic development has not been linear and has been impacted by external and domestic shocks, some directly related to the financial sector. Indeed, India was not spared from external regional and global shocks, such as the Asian financial crisis (1997), the global financial crisis (2008), and more recently, the devastating impact of the COVID-19 pandemic (from 2020) and the war in Ukraine (2022). The economy has also been hit by domestic shocks. The book covers how to strengthen the financial system to support growth and reduce vulnerabilities by discussing the linkages between the financial sector and growth, improvements in bank lending to foster productivity, and measures to further develop India’s corporate bond market. The book reflects on India’s success in leveraging digitalization to foster financial inclusion and highlights how the financial system can help to address climate issues. This book digs deeper into the various facets of India’s financial sector to understand its strengths and opportunities and to elicit policy actions that could help the financial sector better support India’s growth potential.

Download or read book Dynamic Macroeconomic Models in Emerging Market Economies written by Daniel Lukui Jia and published by Springer Nature. This book was released on 2020-08-26 with total page 286 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book summarizes the evolution of modern macroeconomics (New Consensus Macroeconomics, NCM) and proposes a new approach to theoretical and empirical analysis, which is based on a recently developed dynamic stochastic general equilibrium (DSGE) model. Dynamic macroeconomic analysis in emerging market economies is challenging, and of growing importance in the global economy, where emerging markets are becoming more and more influential. Clearly, a deeper understanding of the inner workings of emerging economies, particularly with respect to their socioeconomic structure and the urbanization process, is needed. The book’s extends the NCM/DSGE model to better account for significant economic and social features in emerging market economies. In particular, household heterogeneities and social stratification are explicitly incorporated into the framework proposed here, substantially enhancing the comprehensiveness of the model economy, and allowing it to better account for underlying social structure in emerging economies. Furthermore, financial and housing markets have not been considered sufficiently in either the advanced or emerging economy literature, an oversight this book remedies. As such, it makes an original and valuable contribution to the field, and a direction for future research.

Download or read book India written by International Monetary Fund. Asia and Pacific Dept and published by International Monetary Fund. This book was released on 2014-02-20 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Selected Issues paper analyzes the factors behind the unprecedented widening of India’s current account deficit in terms of the sectoral savings-investment balance. Persistently high inflation is found to have depressed real returns, prompting a surge in gold imports and a marked deterioration in household financial savings. The paper investigates inward and outward spillovers to and from India. The results show that output shocks emanating in globally systemic countries have important global effects, but their impact on India is limited. It is found that shocks originating in India have relatively small global implications, but are very important for several South Asian economies.

Download or read book Macrofinancial Linkages written by Mr.Christopher W. Crowe and published by International Monetary Fund. This book was released on 2010-08-25 with total page 617 pages. Available in PDF, EPUB and Kindle. Book excerpt: Macrofinancial linkages have long been at the core of the IMF's mandate to oversee the stability of the global financial system. With the advent of the economic crisis, the Fund has drawn on this research in order to contribute to critical debates on the nature of appropriate policy responses at both the national and multilateral levels. The current juncture offers a good opportunity to take stock of this body of research by IMF staff and to share it with a wider audience, particularly since few collections have been published in this area. This volume brings together some of the best writing by IMF economists on macrofinancial issues, and highlights the issues and approaches that have guided IMF thinking in an area that makes up an increasingly important component of the IMF's overall remit. The chapters in the volume fit into three broad themes: financial crises and boom-bust cycles; financial integration, financial liberalization, and economic performance; and policy issues relating to macroeconomic policy and the corporate and financial sectors-including domestic and external financial liberalization.

Download or read book Canada written by International Monetary Fund. Monetary and Capital Markets Department and published by International Monetary Fund. This book was released on 2019-06-24 with total page 85 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Financial System Stability Assessment paper discusses that Canada has enjoyed favorable macroeconomic outcomes over the past decades, and its vibrant financial system continues to grow robustly. However, macrofinancial vulnerabilities—notably, elevated household debt and housing market imbalances—remain substantial, posing financial stability concerns. Various parts of the financial system are directly exposed to the housing market and/or linked through housing finance. The financial system would be able to manage severe macrofinancial shocks. Major deposit-taking institutions would remain resilient, but mortgage insurers would need additional capital in a severe adverse scenario. Housing finance is broadly resilient, notwithstanding some weaknesses in the small non-prime mortgage lending segment. Although banks’ overall capital buffers are adequate, additional required capital for mortgage exposures, along with measures to increase risk-based differentiation in mortgage pricing, would be desirable. This would help ensure adequate through-the cycle buffers, improve mortgage risk-pricing, and limit procyclical effects induced by housing market corrections.

Download or read book Perspectives on Inclusive Policies for Development in India written by Saiyed Raza Hashim and published by Springer Nature. This book was released on 2022-06-06 with total page 464 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents perspectives by eminent economists, social scientists and policy makers, exploring in depth the post-reform developments in India, including issues pertaining to growth and equity, issues which have been at the core of life-time work of Prof. R. Radhakrishna. The book brings out how some public policy instruments created to promote growth have turned out to be regressive, promoting inequalities and creating a highly asymmetric federalism in India. It examines the efficacy of fiscal and monetary reforms and also emphasises the need for strengthening the institutions of governance, particularly judiciary and police, in order to boost investors’ confidence. It presents exercises in econometric modelling for explaining factors in growth and vetting policies, and explores the issue of governance and institutions. The book provides insights into the working of an emerging economy and a large democracy which has to strive for public acceptability of the tensions of its negotiations between equity and growth. With its depth of academic excellence and breadth of topics covered, it is a ‘must read’ for researchers, policy makers, industry watchers, think tanks, and NGOs.

Download or read book Macro Financial Linkages in the Pacific Region written by Akira Kohsaka and published by Routledge. This book was released on 2015-03-05 with total page 296 pages. Available in PDF, EPUB and Kindle. Book excerpt: Growth perspectives in emerging market economies are increasingly dependent on international capital flows in recent decades because of their influences on business cycles. In fact, volatile international capital flows has been one of the main concerns for the macroeconomic policy authorities. Focusing on emerging economies in the Pacific region, this book reveals how they are different from those in other regions in terms of international macro-financial linkages to the global capital market and domestic financial development,. The book also discusses how these characteristics have interacted with their macroeconomic policy regimes and their macroeconomic performance throughout the two major international financial crises in the past more than two decades. It suggests facts that have strengthened the resilience of these emerging economies in the Pacific region against the global financial crisis along with the intensified intra-regional economic integration through trade and investment. The book also examines their macroeconomic management focusing on monetary policy regimes and suggests that their factual unorthodox policies with exchange rate management and capital controls have contributed to their resilience against the intrinsic volatility of the international capital market and financial flows.

Download or read book Macroeconomic Impacts of Gender Inequality and Informality in India written by Purva Khera and published by International Monetary Fund. This book was released on 2016-02-09 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the macroeconomic interaction between informality and gender inequality in the labor market. A dynamic stochastic general equilibrium model is built to study the impact of gender-targeted policies on female labor force participation, female formal employment, gender wage gap, as well as on aggregate economic outcomes. The model is estimated using Bayesian techniques and Indian data. Although these policies are found to increase female labor force participation and output, lack of sufficient formal job creation due to labor market rigidities leads to an increase in unemployment and informality, and further widens gender gaps in formal employment and wages. Simultaneously implementing such policies with formal job creating policies helps remove these adverse impacts while also leading to significantly larger gains in output.

Download or read book Taming Indian Inflation written by Mr.Paul Cashin and published by International Monetary Fund. This book was released on 2016-02-25 with total page 242 pages. Available in PDF, EPUB and Kindle. Book excerpt: High and persistent inflation has presented serious macroeconomic challenges in India in recent years, increasing the country’s domestic and external vulnerabilities. A number of factors underpin India’s high inflation. This book analyzes various facets of Indian inflation—the causes, consequences, and policies being implemented to manage it. Several chapters are devoted to analyzing and managing food inflation, given its significance in driving overall inflation dynamics in India.

Download or read book Sustainable Development Insights from India written by Purnamita Dasgupta and published by Springer Nature. This book was released on 2021-03-19 with total page 507 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume is a collection of essays that provide a comprehensive coverage of multiple aspects of the discourse on environment, development and sustainability. It is designed to bring in a host of perspectives highlighting the synergies and the trade-offs in this debate, showcasing research along with policy implications of putting research into use. The global discussion on sustainability paints the broad canvas for this book. This volume aims to probe some contemporary issues that will help in understanding the sustainability narrative in India. The topics span over a host of questions on energy, environment, natural resources and related constituents of development. The discourse further extends to the role of economic modelling, public policy debates, political intervention, stakeholders’ response, community participation and so on. The discussions are often based on empirical support, review of existing literature as well as policy analysis. With an ultimate aim to understand the overall development narrative of the people of India, the discourse takes in its ambit the nuances of resource utilisation, economic growth, COVID-19 impacts, competitiveness and market structures, urbanization, sectoral reforms, environmental hazards, climate change, pollution, natural resource accounting and management to name a few. The book is divided into four sections, namely, The Big Picture: Evolving Perspectives; The Energy Scenario: Dilemmas and Opportunities; Sustainability Cross-Cuts: Developmental Aspects and Externality Empirics: Knowledge and Practice. The first section contains commentaries on the overarching themes of economic growth, development and sustainability. It presents some emerging perspectives on the developmental crisis that has emerged through the environmental lens with additional focus on the need for inclusion of creativity, knowhow, technology and financial resources to achieve the ambitious SDG targets. The second section brings out the dilemmas and opportunities in the energy sector, that has been a key player in discussions of sustainability, especially for India where significant technological advances in conventional forms of energy supply coexists with fairly low levels of per capita energy consumption and energy security is a key challenge. The section on sustainability crosscuts attempts to highlight the problems and processes of mainstreaming the sustainability question into conventional thinking through the concepts of a circular economy, green accounting techniques, institutional and governance structures, public policy and inclusive growth, amongst others. The last section presents some empirical studies on environmental externalities, the unaccounted environmental effects of economic production and consumption and finally the behavioural aspects of the stakeholders that are crucial in the larger narrative of sustainable development. This edited volume contains contributions of reputed scholars from various Indian universities, research institutions and professionals from outside academia, who are proven experts in their fields. The link between policy, practice, and well-being of the large vulnerable population of India is the major focus of enquiry that will help researchers, practitioners and policy planners in conducting further research in energy, environment, resource and linked areas of development economics. General readers with an active interest in energy, environment, and economic development are also likely to find this book an interesting read, especially in the times of several environmental challenges facing humankind.

Download or read book Food Inflation in India written by Rahul Anand and published by International Monetary Fund. This book was released on 2014-09-24 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: Indian food and fuel inflation has remained high for several years, and second-round effects on core inflation are estimated to be large. This paper estimates the size of second-round effects using an estimated reduced-form general equilibrium model of the Indian economy, which incorporates pass-through from headline inflation to core inflation. The results indicate that India's inflation is highly inertial and persistent. Due to second-round effects, the gap between headline inflation and core inflation decreases by about three fourths within one year as core inflation catches up with headline inflation. Large second-round effects stem from several factors, such as the high share of food in household expenditure and the role of food inflation in informing inflation expectations and wage setting. Analysis suggests that in order to durably reduce the current high inflation, the monetary policy stance needs to remain tight for a considerable length of time. In addition, progress on structural reforms to raise potential growth is critical to reduce the burden on monetary policy.