.......What comes out strongly is the effect of persisting inflation. Countries with high pre-existing inflation are more vulnerable to commodity price shocks. A plausible explanation is the effect of inflation expectations, with firms responding to cost increases by raising prices. What are the implications for India of these results? First, many of the identified structural characteristics shown to be factors in cost transmission, one of which is the extent of fiscal dominance, have been regularly flagged by RBI in its analytic underpinning of monetary policy. Imbalances in these characteristics will have to be mitigated.......
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
No comments:
Post a Comment