Download or read book Understanding India s Food Inflation written by Rahul Anand and published by International Monetary Fund. This book was released on 2016-01-05 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past decade, India has seen a prolonged period of high inflation, to a large extent driven by persistently-high food inflation. This paper investigates the demand and supply factors behind the contribution of relative food inflation to headline CPI inflation. It concludes that in the absence of a stronger food supply growth response, food inflation may exceed non-food inflation by 21⁄2–3 percentage points per year. The sustainability of a long-term inflation target of 4 percent under India’s recently-adopted flexible inflation targeting framework will depend on enhancing food supply, agricultural market-based pricing, and reducing price distortions. A well-designed cereal buffer stock liquidation policy could also help mitigate food inflation volatility.
Download or read book Understanding India s Food Inflation written by Rahul Anand and published by International Monetary Fund. This book was released on 2016-01-05 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past decade, India has seen a prolonged period of high inflation, to a large extent driven by persistently-high food inflation. This paper investigates the demand and supply factors behind the contribution of relative food inflation to headline CPI inflation. It concludes that in the absence of a stronger food supply growth response, food inflation may exceed non-food inflation by 21⁄2–3 percentage points per year. The sustainability of a long-term inflation target of 4 percent under India’s recently-adopted flexible inflation targeting framework will depend on enhancing food supply, agricultural market-based pricing, and reducing price distortions. A well-designed cereal buffer stock liquidation policy could also help mitigate food inflation volatility.
Download or read book Understanding India s Food Inflation written by and published by . This book was released on 2015 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past decade, India has seen a prolonged period of high inflation, to a large extent driven by persistently-high food inflation. This paper investigates the demand and supply factors behind the contribution of relative food inflation to headline CPI inflation. It concludes that in the absence of a stronger food supply growth response, food inflation may exceed non-food inflation by 2 1/2-3 percentage points per year. The sustainability of a long-term inflation target of 4 percent under India's recently-adopted flexible inflation targeting framework will depend on enhancing food supply, agricultural market-based pricing, and reducing price distortions. A well-designed cereal buffer stock liquidation policy could also help mitigate food inflation volatility. --Abstract.
Download or read book Understanding Food Inflation in India written by Akash Malhotra and published by . This book was released on 2017 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past decade, the stellar growth of Indian economy has been challenged by persistently high levels of inflation, particularly in food prices. The primary reason behind this stubborn food inflation is mismatch in supply-demand, as domestic agricultural production has failed to keep up with rising demand owing to a number of proximate factors. The relative significance of these factors in determining the change in food prices have been analysed using gradient boosted regression trees (BRT) - a machine learning technique. The results from BRT indicates all predictor variables to be fairly significant in explaining the change in food prices, with MSP and farm wages being relatively more important than others. International food prices were found to have limited relevance in explaining the variation in domestic food prices. The challenge of ensuring food and nutritional security for growing Indian population with rising incomes needs to be addressed through resolute policy reforms.
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.
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 244 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 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 What is Responsible for India s Sharp Disinflation written by Sajjid Chinoy and published by International Monetary Fund. This book was released on 2016-09-07 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: We analyze the dramatic decline in India’s inflation over the last two years using an augmented Phillips Curve approach and quantify the role of different factors. Our results suggest that, contrary to popular perception, the direct role of lower oil prices in India’s disinflation was relatively modest given the limited pass-through into domestic prices. Instead, we find that inflation is a highly persistent process in India, reflecting very adaptive expectations and the backward looking nature of wage and support price-setting. As a consequence, we find that a moderation of expectations, both backward and forward, and a rationalization of Minimum Support Prices (MSPs), explain the bulk of the disinflation over the last two years.
Download or read book Monetary Policy in India written by Chetan Ghate and published by Springer. This book was released on 2016-11-25 with total page 653 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents research that applies contemporary monetary theory and state-of-the-art econometric methods to the analysis of the monetary and financial aspects of the Indian economy and the impact of monetary policy on economic performance. Indian monetary policy has attracted significant attention from Indian and international macroeconomists over the last several years. Interest in how monetary policy influences economic performance and how monetary policy is conducted in India is growing. The prospects for further financial sector reform and ongoing inflation in India have sparked new interest in the role of money and monetary policy in India among economists, policy makers and students alike. The book should also interest economists outside India because it studies monetary economics in a major emerging market economy and makes advances in the analysis of how financial market imperfections and structural constraints influence the effects of monetary policy.
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 2015-03-11 with total page 77 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Selected Issues paper examines how surges in global financial market volatility spill over to emerging market economies (EMs) including India. The results suggest that a surge in global financial market volatility is transmitted very strongly to key macroeconomic and financial variables of EMs, and the extent of its pass-through increases with the depth of external balance-sheet linkages between advanced countries and EMs. The paper also looks at food inflation, which has often been singled out as a key driver of India’s high and persistent inflation.
Download or read book Food inflation and food price volatility in India Trends and determinants written by Sekhar, C.S.C. and published by Intl Food Policy Res Inst. This book was released on 2017-05-05 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: The study analyzes food inflation trends in India over the last decade. Annual trends show that different commodities have contributed to food inflation in different years and that no single commodity shows uniformly high inflation. A decomposition exercise shows that eggs, meat, fish, milk, cereals, and vegetables were generally the main contributors to recent food inflation. The contribution of pulses, except pigeon peas (arhar), and of edible oils remained low. Fruits and vegetables displayed a much higher degree of intrayear volatility, and high-weight commodities in the national consumption basket also showed very high inflation rates, which is a cause for concern. Results of the econometric analysis show that both supply and demand factors are important. Cereal and edible oil prices appear to be mainly driven by supply-side factors such as production, wage rates, and minimum support prices. For pulses, the effects of supply- and demand-side factors appear almost equal. The prices of eggs, meat, fish, milk, and fruits and vegetables appear to be driven mainly by demand-side factors.
Download or read book Understanding Inflation in India written by Laurence M. Ball and published by . This book was released on 2016 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the behavior of quarterly inflation in India since 1994, both headline inflation and core inflation as measured by the weighted median of price changes across industries. We explain core inflation with a Phillips curve in which the inflation rate depends on a slow-moving average of past inflation and on the deviation of output from trend. Headline inflation is more volatile than core: it fluctuates due to large changes in the relative prices of certain industries, which are largely but not exclusively industries that produce food and energy. There is some evidence that changes in headline inflation feed into expected inflation and future core inflation. Several aspects of India’s inflation process are similar to inflation in advanced economies in the 1970s and 80s.
Download or read book IMF Research Bulletin March 2016 written by International Monetary Fund. Research Dept. and published by International Monetary Fund. This book was released on 2016-04-06 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: The IMF Research Bulletin includes listings of recent IMF Working Papers and Staff Discussion Notes. The research summaries in this issue are “Explaining the Recent Slump in Investment” (Mathieu Bussiere, Laurent Ferrara, and Juliana Milovich) and “The Quest for Stability in the Housing Markets” (Hites Ahir). The Q&A column reviews “Seven Questions on Estimating Monetary Transmission Mechanism in Low-Income Countries” (Bin Grace Li, Christopher Adam, and Andrew Berg). Also included in this issue are updates on the IMF’s official journal, the IMF Economic Review, and recommended readings from IMF Publications.
Download or read book Macroeconomic Policy in India Since the Global Financial Crisis written by Sebastian Morris and published by Springer Nature. This book was released on 2022-05-25 with total page 316 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book discusses the Indian economic crisis and brings out what went wrong and the correction necessary for getting the economy back to high growth trajectory, leading to economic transformation. To do so, the book covers trends in performance of Indian economy since the Global Financial Crisis to the COVID-19 effect, bringing out factors that have determined the same. The book questions the approach to macroeconomic policy of both the RBI and the government and brings out what it takes for macroeconomic policy to be supportive of high growth. It contains revealing contrasts with East Asia and China, although India has the same potential to grow with an expansion of manufacturing. Overall, it argues that macroeconomic policies (as much as structural, industrial, and trade policies) have been deficient and even good initiatives on the industrial policy and trade flounder for the lack of a strategic approach to macroeconomics. The book highlights the special opportunities present in an emerging economy with vast under and utilised labour and the macroeconomic policy initiatives that can take advantage of this key feature. It covers the macroeconomic data on growth using multiple indicators, then the external shocks and the internal policy measures/responses; besides, GVA/GDP, credit, exports, external transactions, interest and policy rates, yields, exchange rates, money, capital flows, indices of industrial sector, price indices and inflation, government expenditures, tax rates, fiscal deficits, market uncertainty measures to present a holistic picture of the economy and the shocks and policy actions that have followed. The book uses an innovative method of presentation and the consistency of the trends/stances of both monetary and fiscal policy using these large number of variables. It discusses the debate on overestimation of GDP/GVA growth estimates over the years from 2011-12 to about 2016-17 comprehensively. There is special coverage of GST with a comparison with China. Coverage also includes performance since the COVID-19 crisis again using a large number of indicators and an explanation for the same in terms of the limitations of the government’s initiatives to counteract. The book is a quick and ready reference of what has happened in macroeconomic terms to those interested in the relevant facts. It is of interest to international economists, policy analysts, and investors whose need to understand that the Indian economy in macroeconomic terms and in terms of the stances and penchant of the government and the RBI is of value.
Download or read book Sustaining High Growth in India written by Pradeep Agrawal and published by Cambridge University Press. This book was released on 2017-11-08 with total page 560 pages. Available in PDF, EPUB and Kindle. Book excerpt: The growth rate of the Indian economy has plummeted sharply from 9 per cent in 2010 to below 5 per cent over 2012−14. It is essential to sustain a growth rate of 8 per cent or more over the next 20 years to eliminate poverty and reach a decent standard of living. There is an urgent need for research on the challenges facing India in reviving and sustaining high rates of economic growth, some of which are related to industrial policy, trade policy, infrastructure bottlenecks, inflation and macroeconomic issues, governance issues, demography and human capital. There is also a need for better industrial and human resource policies, higher investment and savings rates, higher exports and foreign investment inflows. This book studies the importance of growth, the role of industrial policy in sustaining it, and other critical issues regarding ways to revive and sustain higher growth in India across various sectors of the economy.
Download or read book India s Economic Resurgence written by C B Rao and published by Notion Press. This book was released on 2018-10-26 with total page 525 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economics is a social science concerned mainly with description and analysis of the production, distribution, and consumption of goods and services. Beyond the various theories and models, however, economics has close relationship with day to day life. This book reviews the economic journey of India over the last seventy years, and seeks to stimulate the readers’ thinking on some major issues and potentialities facing the Indian economy. Five main themes flow through the book – India’s potential to be the World’s third largest economic power by 2030, the challenges of socio-economic equity that India faces, the several opportunities that India has in that journey, the critical role of governance, leadership, management and administration, and the importance of mindset changes to power India’s futureeconomic growth. A special focus is laid on the role of government policies and projects in socio-economic development. The book sensitises the readers, including college students in general, and students of economics in particular, to the happenings around us which have significant economic import. The book makes all through its seventy chapters several suggestions to power India’s growth as a global economic superpower, on a plank of socioeconomic equity. This book serves as an expansive thought primer and focussed execution guide for an economically independent and resurgent India.
Download or read book Understanding India s Economy written by Dhires Bhattacharyya and published by . This book was released on 1969 with total page 186 pages. Available in PDF, EPUB and Kindle. Book excerpt:
