TY - JOUR
T1 - The Inflation-Growth Nexus in India: an Empirical Analysis
AU - Kalirajan, Kaliappa
AU - Singh, Kanhaiya
PY - 2003
Y1 - 2003
N2 - 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.
AB - 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.
U2 - 10.1016/S0161-8938(03)00011-5
DO - 10.1016/S0161-8938(03)00011-5
M3 - Article
VL - 25
SP - 319
EP - 430
JO - Journal of Policy Modeling
JF - Journal of Policy Modeling
SN - 0161-8938
IS - 4
ER -