Abstract
Given the growing concern, particularly in the EMU area that excessively low inflation threshold may hurt economic growth, the objective of this study is to examine whether a developing countries perspective is different. The empirical analysis is done using the annual data from India for the period of 1971-1998. A specific question that is addressed in this paper is what is the threshold inflation rate for India. The findings clearly suggest that the increase in inflation from any level has negative effect on economic growth and substantial gains can be obtained by focusing the monetary policy towards maintaining price stability.
| Original language | English |
|---|---|
| Pages (from-to) | 377-396 |
| Number of pages | 20 |
| Journal | Journal of Policy Modeling |
| Volume | 25 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - Jun 2003 |