01860cas a2200265 a 4500 AALejournalIMF017031 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475523935 1018-5941 BD-DhAAL BD-DhAAL Chinoy, Sajjid. What is Responsible for India's Sharp Disinflation? / Sajjid Chinoy, Pankaj Kumar, Prachi Mishra. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (37 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 We analyze the dramatic decline in India's inflation over the last two years using an augmented Phillips Curve approach and quantify the role of different factors. Our results suggest that, contrary to popular perception, the direct role of lower oil prices in India's disinflation was relatively modest given the limited pass-through into domestic prices. Instead, we find that inflation is a highly persistent process in India, reflecting very adaptive expectations and the backward looking nature of wage and support price-setting. As a consequence, we find that a moderation of expectations, both backward and forward, and a rationalization of Minimum Support Prices (MSPs), explain the bulk of the disinflation over the last two years. Mode of access: Internet Kumar, Pankaj. Mishra, Prachi. IMF Working Papers; Working Paper ; No. 2016/166 Full text available on IMF http://elibrary.imf.org/view/journals/001/2016/166/001.2016.issue-166-en.xml IMF e-Library