Publications
Inflation, uncertainty and monetary policy in India: a regime-switching analysis
Publication date
Details
Economics Bulletin, 35(4):2213-19Authors
Sudhanshu KumarAbstract
Based on the characteristics of the inflation data for India, the paper first identifies the possible number of significantly different regimes using Kernel density estimates; and then it estimates a Markov-switching model using the Maximum Likelihood Estimation. Estimated results suggest that high inflation uncertainty in India has not only been a feature of very high levels of inflation but is also associated with the low levels.