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

Articles By Interest Rate

A Horse Race among the Alternative Taylor Rule Specifications

The paper estimates a slew of augmented Taylor rule specifications using call and treasury bill rates. After accounting for break points, we calculate the output gap based on a single-index dynamic factor extracted from monthly high-frequency indicators that are representative of broad sectoral activity. In our study, we found that interest rates in India are mostly in line with the augmented Taylor rule specifications after the Reserve Bank of India started using flexible inflation targeting.

Atal Pension Yojana

The Atal Pension Yojana—an old-age pension scheme for informal sector workers—is a major initiative to ensure fixed monthly pension for the elderly. This is guaranteed by the government through the provisioning of assured rates of interest during the accumulation and distribution period. An analysis of the benefit patterns and recommendations to make the scheme more attractive for the informal sector workers is presented.