Sectoral effects of disinflation: Evidence from India

dc.contributor.author Durai, S. Raja Sethu
dc.contributor.author Ramachandran, M.
dc.date.accessioned 2022-03-27T02:10:40Z
dc.date.available 2022-03-27T02:10:40Z
dc.date.issued 2013-01-01
dc.description.abstract This paper makes an attempt to measure sacrifice ratios for the farm and non-farm sector as disinflation policy is believed to have differential impact on these sectors. Using the non-parametric approach of Ball (1994), five disinflation episodes are identified for India over the period from 1950-51 to 2009-10. These disinflations are largely due to contractionary monetary policy pursued by the Reserve Bank of India. The estimates of the sacrifice ratio and the presence of persistence and hysteresis effects indicate that disinflationary monetary policy is more harmful to output growth in the non-farm sector. In contrast, the negative sacrifice ratio in the farm sector implies that there is output gain during disinflationary periods. This output gain in the farm sector seems to have been driven by those factors which are independent of contractionary monetary shocks. These evidences also suggest that use of aggregate time series data might produce errors in the measurement of sacrifice ratios. © 2013 Copyright Taylor and Francis Group, LLC.
dc.identifier.citation Macroeconomics and Finance in Emerging Market Economies. v.6(1)
dc.identifier.issn 17520843
dc.identifier.uri 10.1080/17520843.2012.728236
dc.identifier.uri http://www.tandfonline.com/doi/abs/10.1080/17520843.2012.728236
dc.identifier.uri https://dspace.uohyd.ac.in/handle/1/4957
dc.subject disinflation monetary policy
dc.subject hysteresis
dc.subject persistence
dc.subject sacrifice ratio
dc.title Sectoral effects of disinflation: Evidence from India
dc.type Journal. Article
dspace.entity.type
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