TY - JOUR
T1 - Monetary transmission in post-reform India
T2 - An evaluation
AU - Singh, Kanhaiya
AU - Kalirajan, Kaliappa
PY - 2007/5
Y1 - 2007/5
N2 - In the post-reform period, the monetary policy of India has been undergoing various transformations. The emphasis is shifting from conventional instruments of price and quantity control to a more sophisticated route of monetary transmission. Using the recent econometric methodology of cointegrated vector autoregression with generalized restrictions, this study has attempted to examine whether monetary policy in India does work through interest rates in the post-reform period. The long-run relationship and the short-run dynamics suggest an important role for the interest rate.
AB - In the post-reform period, the monetary policy of India has been undergoing various transformations. The emphasis is shifting from conventional instruments of price and quantity control to a more sophisticated route of monetary transmission. Using the recent econometric methodology of cointegrated vector autoregression with generalized restrictions, this study has attempted to examine whether monetary policy in India does work through interest rates in the post-reform period. The long-run relationship and the short-run dynamics suggest an important role for the interest rate.
KW - Cointegration
KW - Generalized impulse response
KW - Interest rate policy
KW - Structural vector error correction model
UR - http://www.scopus.com/inward/record.url?scp=34047220429&partnerID=8YFLogxK
U2 - 10.1080/13547860701252371
DO - 10.1080/13547860701252371
M3 - Article
SN - 1354-7860
VL - 12
SP - 158
EP - 187
JO - Journal of the Asia Pacific Economy
JF - Journal of the Asia Pacific Economy
IS - 2
ER -