Skip to main content
Article thumbnail
Location of Repository

Industry Effects of Monetary Policy: Evidence from India

By Saibal Ghosh

Abstract

The study exploits 2-digit level industry data for the period 1981-2004 to ascertain the interlinkage between a monetary policy shock and industry value added. Accordingly, we first estimate a Vector Auto Regression (VAR) model to ascertain the magnitude of a monetary policy shock on industrial output. Subsequently, we try to explain the observed heterogeneity in terms of industry characteristics. The findings indicate that (a) industries exhibit differential response to a monetary tightening and (b) both interest rate and financial accelerator variables tend to be important in explaining the differential response.

Topics: E52 - Monetary Policy, L60 - General
Year: 2009
DOI identifier: 10.2139/ssrn.414900
OAI identifier: oai:mpra.ub.uni-muenchen.de:17307

Suggested articles


To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.