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The Inflation-Growth Nexus in India: an Empirical Analysis

Date

2003

Authors

Singh, Kanhaiya
Kalirajan, Kaliappa

Journal Title

Journal ISSN

Volume Title

Publisher

Elsevier

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.

Description

Keywords

Keywords: Economic growth; India; Inflation; Threshold inflation

Citation

Source

Journal of Policy Modeling

Type

Journal article

Book Title

Entity type

Access Statement

License Rights

DOI

10.1016/S0161-8938(03)00011-5

Restricted until

2037-12-31