01755cas a2200253 a 4500 AALejournalIMF006365 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451982640 1018-5941 BD-DhAAL BD-DhAAL Patra, Michael. Inflation Expectations and Monetary Policy in India : An Empirical Exploration / Michael Patra, Partha Ray. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper pursues a computationally intensive approach to generate future inflation, followed by an exploration of the determinants of inflation expectations by estimating a new Keynesian type Phillips curve that takes into account country-specific characteristics, the stance of monetary and fiscal policies, marginal costs and exogenous supply shocks. The empirical results indicate that high and climbing inflation could easily seep into people's anticipation of future inflation and linger. There is a reputational bonus for monetary policy to act against inflation now rather than going for cold turkey when societal compulsions reach a critical mass. Mode of access: Internet Ray, Partha. IMF Working Papers; Working Paper ; No. 2010/084 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/084/001.2010.issue-084-en.xml IMF e-Library