02117cas a2200277 a 4500 AALejournalIMF017439 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475578690 1018-5941 BD-DhAAL BD-DhAAL Benes, Jaromir. Inflation-Forecast Targeting for India : An Outline of the Analytical Framework / Jaromir Benes, Kevin Clinton, Asish George, Joice John. Washington, D.C. : International Monetary Fund, 2017. 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 India formally adopted flexible inflation targeting (FIT) in June 2016 to place price stability, defined in terms of a target CPI inflation, as the primary objective of monetary policy. In this context, the paper draws on Indian macroeconomic developments since 2000 and the experience of other countries that adopted FIT to bring out insights on how credible policy with an emphasis on a strong nominal anchor can reduce the impact of supply shocks and improve macroeconomic stability. For illustrating the key issues given the unique structural characteristics of India and the policy options under an FIT framework, the paper describes an analytical framework using the core quarterly projection model (QPM). Simulations of the QPM are carried out to illustrate the monetary policy responses under different types of uncertainty and to bring out the importance of gaining credibility for improving monetary policy efficacy. Mode of access: Internet Clinton, Kevin. George, Asish. John, Joice. IMF Working Papers; Working Paper ; No. 2017/032 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/032/001.2017.issue-032-en.xml IMF e-Library