Effectiveness of alternative channels of monetary policy transmission: some evidence for India

Barendra Kumar Bhoi, Arghya Kusum Mitra, Jang Bahadur Singh and Gangadaran Sivaramakrishnan

Macroeconomics and Finance in Emerging Market Economies, 2017, vol. 10, issue 1, 19-38

Abstract: In this article, we have employed ‘shutdown’ methodology, not used before in the Indian context, to study the relative importance of alternative channels of monetary policy transmission. We have, for the first time, studied the impact of monetary policy on consumer price index (CPI) inflation. In response to a shock to the operating target, the maximum decline in gross domestic product growth occurs with a lag of two to three quarters, while the impact on inflation (both CPI and wholesale price index) is felt with a lag of three to four quarters. The interest rate channel is found to be the most dominant channel of monetary policy transmission in India.

Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://hdl.handle.net/10.1080/17520843.2016.1188837 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:macfem:v:10:y:2017:i:1:p:19-38

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/REME20

DOI: 10.1080/17520843.2016.1188837

Access Statistics for this article

Macroeconomics and Finance in Emerging Market Economies is currently edited by Subrata Sarkar and Ashima Goyal

More articles in Macroeconomics and Finance in Emerging Market Economies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().