Scholarlink

<p>The present study attempts to empirically evaluate the efficiency of the Flexible Inflation Targeting (FIT) regime (2015–2022) as compared to the Multiple Indicator Approach regime (1998–2015) of monetary policy of India by constructing efficiency frontiers (When the output inflation variability trade-off is estimated for optimum policy, it is called as Central Bank Efficiency Frontier or Taylor Curve). This requires an estimate of the slope of the Aggregate Supply curve of the economy, the potential output, targeted inflation, and the Central Bank’s inflation aversion parameter as the intermediate parameters. The empirical results reveal that (a) the RBI continues to remain a conservative Central Bank during both the regimes (b) the monetary policy found to be more efficient during the FIT regime, (c) disinflation was costlier during the MIA regime and (d) the inflation expectations anchoring has improved during the FIT regime.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Evaluating the inflation targeting framework of monetary policy of India

  • 期刊论文

  • 发表日期：

    2026年3月4日

查看全文
  • Anuradha Patnaik

摘要

The present study attempts to empirically evaluate the efficiency of the Flexible Inflation Targeting (FIT) regime (2015–2022) as compared to the Multiple Indicator Approach regime (1998–2015) of monetary policy of India by constructing efficiency frontiers (When the output inflation variability trade-off is estimated for optimum policy, it is called as Central Bank Efficiency Frontier or Taylor Curve). This requires an estimate of the slope of the Aggregate Supply curve of the economy, the potential output, targeted inflation, and the Central Bank’s inflation aversion parameter as the intermediate parameters. The empirical results reveal that (a) the RBI continues to remain a conservative Central Bank during both the regimes (b) the monetary policy found to be more efficient during the FIT regime, (c) disinflation was costlier during the MIA regime and (d) the inflation expectations anchoring has improved during the FIT regime.