ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Response to 'A Cost-Benefit Analysis of UID'

A debate on the study "A Cost-Benefi t Analysis of Aadhaar" conducted by the National Institute of Public Finance and Policy which was discussed in the EPW of 2 February 2013.

How Should Inflation Be Measured in India?

Though monetary policy in India is not explicitly charged with delivering low and stable inflation, it still needs to choose a measure of inflation as a reference. Questions of timeliness, weights in the price index, accuracy of food price measurement, and inclusion of the prices of services are relevant to the choice of measure. This paper looks at detailed price data, expenditure patterns of households and the composition of different price indices available in India, and discusses policies on inflation measurement in other countries. Under present conditions of measurement, the consumer price index for industrial workers, despite some serious deficiencies, is preferable to both the wholesale price index and the GDP deflator as the headline inflation rate. Thus, macroeconomic analysis and policy thinking need to move away from a focus on the WPI to the CPI-IW.

Examining the Decoupling Hypothesis for India

This paper examines the decoupling hypothesis for India. It analyses business cycle synchronisation between India and a set of industrial economies, particularly the United States, over the period 1992 to 2008. The evidence suggests that the Indian business cycle exhibits increasing co-movement with business cycles in industrial economies over this period. Indian business cycle synchronisation is stronger with industrial countries as a whole as opposed to the co-movement found with the us.

Early Warnings of Inflation in India

In India, year-on-year percentage changes of price indexes are widely used as the measure of inflation. In terms of monthly data, each observation of a one-year change in inflation is the sum of 12 one-month changes. This suggests that better information about inflationary pressures can be obtained using point-on-point monthly changes. This requires seasonal adjustment. We apply standard seasonal adjustment procedures in order to obtain a point-on-point seasonally adjusted monthly time-series of inflation in India. In three interesting high inflation episodes - 1994-95, 2007 and 2008 - we find that this data yields a faster and better understanding of inflationary pressures.

Indian Currency Regime and Its Consequences

This article explains India's currency regime, highlights the implications of a pegged currency and then goes on to discuss the time variation in the flexibility of currency in the Indian context.

Asian Crisis Revisited

The East Asian Currency Crisis by Mihir Rakshit; Oxford University Press, Delhi, 2002; pp xii+288, Rs 545 .
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