The credit portfolio of domestic systemically important banks in India from 2009–10 to 2019–20 is examined through an industry-wise analysis. The industry-wise default risk and bank-wise recovery risk estimates reflect on the expected and unexpected losses of D-SIBs. The study attempts to consider the Basel (2006) guidelines for the estimation of correlation, which is derived from asset correlations based on equity returns. The industry-wise analysis is important for lenders in monitoring the volatile industries. The analysis assesses the risk adjusted performance of lending institutions that are systemically important.
The credit portfolio of domestic systemically important banks in India from 2009–10 to 2019–20 is examined through an industry-wise analysis. The industry-wise default risk and bank-wise recovery risk estimates reflect on the expected and unexpected losses of D-SIBs. The study attempts to consider the Basel (2006) guidelines for the estimation of correlation, which is derived from asset correlations based on equity returns. The industry-wise analysis is important for lenders in monitoring the volatile industries. The analysis assesses the risk adjusted performance of lending institutions that are systemically important.
The credit portfolio of domestic systemically important banks in India from 2009–10 to 2019–20 is examined through an industry-wise analysis. The industry-wise default risk and bank-wise recovery risk estimates reflect on the expected and unexpected losses of D-SIBs. The study attempts to consider the Basel (2006) guidelines for the estimation of correlation, which is derived from asset correlations based on equity returns. The industry-wise analysis is important for lenders in monitoring the volatile industries. The analysis assesses the risk adjusted performance of lending institutions that are systemically important.
The Reserve Bank of India adopted inflation-targeting monetary policy based on the New Keynesian 3-equation model. How realistic are the assumptions, and how effective have monetary policy instruments been in controlling the inflation rate? Given India’s structural specificities, what are the implications of cost-push inflation for policy rate and output gap? This paper addresses these questions by identifying alternative theoretical possibilities within a simple 3-equation model and locating the Indian specificity by estimating the Phillips curve and monetary policy rule equation. The analysis points towards the constraints of monetary policy in India due to presence of a flat Phillips curve and indicates the possibility of adverse effect on output gap due to presence of Taylor’s rule.
The Reserve Bank of India adopted inflation-targeting monetary policy based on the New Keynesian 3-equation model. How realistic are the assumptions, and how effective have monetary policy instruments been in controlling the inflation rate? Given India’s structural specificities, what are the implications of cost-push inflation for policy rate and output gap? This paper addresses these questions by identifying alternative theoretical possibilities within a simple 3-equation model and locating the Indian specificity by estimating the Phillips curve and monetary policy rule equation. The analysis points towards the constraints of monetary policy in India due to presence of a flat Phillips curve and indicates the possibility of adverse effect on output gap due to presence of Taylor’s rule.
By firmly anchoring inflation expectations, monetary policy can prevent a wage-price spiral and moderate the second-round effects of supply shocks, thereby avoiding an inferior macroeconomic outcome of lower growth and higher inflation.
By firmly anchoring inflation expectations, monetary policy can prevent a wage-price spiral and moderate the second-round effects of supply shocks, thereby avoiding an inferior macroeconomic outcome of lower growth and higher inflation.
By firmly anchoring inflation expectations, monetary policy can prevent a wage-price spiral and moderate the second-round effects of supply shocks, thereby avoiding an inferior macroeconomic outcome of lower growth and higher inflation.
It is argued that a key question of the operation of monetary policy is its decomposition into a price effect and an output effect. Specifically, the
association between the easing of global monetary and liquidity conditions on the one hand, and the significant spurt in inflation, on the other, in recent
times is probed to conclude that across the world, there seems to be an association. The issues of monetary stability, price stability and financial stability are also intimately interlinked.
It is argued that a key question of the operation of monetary policy is its decomposition into a price effect and an output effect. Specifically, the
association between the easing of global monetary and liquidity conditions on the one hand, and the significant spurt in inflation, on the other, in recent
times is probed to conclude that across the world, there seems to be an association. The issues of monetary stability, price stability and financial stability are also intimately interlinked.
It is argued that a key question of the operation of monetary policy is its decomposition into a price effect and an output effect. Specifically, the
association between the easing of global monetary and liquidity conditions on the one hand, and the significant spurt in inflation, on the other, in recent
times is probed to conclude that across the world, there seems to be an association. The issues of monetary stability, price stability and financial stability are also intimately interlinked.
Post the pandemic, the world seems to be back on a high-inflation path, and many geographies in the advanced world have started witnessing inflation rates that were prevalent in the early 1970s.
The “New Washington Consensus” is not really new as the greatly magnified role and influence of the huge transnational corporations, especially the military–industrial complex that drives both the economics and foreign policy of the United States, remains untouched. Further, there is no consensus on its anti-China thrust either as the majority of countries searching for strategic autonomy, including many of the US’s own allies, would not risk breaking economic relations with China.
