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| Akihiro Kubo |
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| ''The effects of a monetary policy shock: Evidence from India'' |
| ( 2009, Vol. 29 No.3 ) |
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| This paper empirically investigates the transmission of the Reserve Bank of India (RBI)'s monetary policy at a time when multiple indicator approaches are popular, using a structural VAR approach. We find that non-recursive zero restrictions must be imposed on the contemporaneous structural parameters to identify a monetary policy shock and that the RBI regards the current value of money as the centered information variable of the monetary policy, though exercising leverage over the real interest rate. |
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| Keywords: Transmission of monetary policy, SVAR, India |
JEL: E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General
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| Manuscript Received : May 26 2009 | | Manuscript Accepted : Jul 01 2009 |
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