01710cas a2200253 a 4500 AALejournalIMF006669 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455202171 1018-5941 BD-DhAAL BD-DhAAL Kapur, Muneesh. A Monetary Policy Model Without Money for India / Muneesh Kapur, Michael Patra. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (62 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 A New Keynesian model estimated for India yields valuable insights. Aggregate demand reacts to interest rate changes with a lag of at least three quarters, with inflation taking seven quarters to respond. Inflation is inertial and persistent when it sets in, irrespective of the source. Exchange rate pass-through to domestic inflation is low. Inflation turns out to be the dominant focus of monetary policy, accompanied by a strong commitment to the stabilization of output. Recent policy actions have raised the effective policy rate, but the estimated neutral policy rate suggests some further tightening to normalize the policy stance. Mode of access: Internet Patra, Michael. IMF Working Papers; Working Paper ; No. 2010/183 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/183/001.2010.issue-183-en.xml IMF e-Library