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Inflation Targeting amidst Structural Change
Some Analytics for Developing Economies
The interconnection between relative price movements, structural change, and inflation targeting in a developing economy like India is studied through a simple macroeconomic model. Different sectors of a developing economy belong to distinctly different stages of development and grow at different rates. It is argued that changes in relative price and structural change are endogenously determined by imbalances in sectoral growth rates.
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Updated On : 31st Mar, 2017
