The Inflation-Growth Nexus in India: an Empirical Analysis

Kaliappa Kalirajan, Kanhaiya Singh

    Research output: Contribution to journalArticle


    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 languageEnglish
    Pages (from-to)319-430
    JournalJournal of Policy Modeling
    Issue number4
    Publication statusPublished - 2003


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