A VAR Model of Monetary Policy and Hypothetical Case of Inflation Targeting in India

The empirical VAR literature on identification and measurement of the impact of monetary policy shocks on the real side of the economy is fairly comprehensive for developed economies but very limited for emerging and transition economies. In this study, we propose an identification scheme, for a developing economy taking India as a case study, which is able to capture the monetary transmission mechanism without giving rise to any empirical anomalies. We use a VAR approach with recursive contemporaneous restrictions and identify monetary policy shocks by modelling the reaction function of the central bank and structure of the economy. The effect of monetary policy shocks on the exchange rate and other macroeconomic variables is consistent with the predictions of a broad set of theoretical models. This set-up is used to build a hypothetical case of inflation targeting where the monetary policy instrument is set after looking at the current values of inflation only. This is in contrast with the „multiple indicator approach‟ currently followed by Reserve Bank of India. This hypothetical scenario of inflation targeting suggests a sharper response of the interest rate (monetary policy instrument) to shocks and strengthening of the exchange rate channel in transmission of interest rate impulses. This study also provides some useful implications on the type of theoretical framework which can be used to model the evolution of monetary policy for a developing economy like India.India, Inflation Targeting, Monetary policy, VAR

PRE-CONDITIONS FOR INFLATION TARGETING IN AN EMERGING ECONOMY - THE CASE OF INDIA

This article looks at the preconditions that an emerging economy needs to fulfill, before it can adopt inflation targeting as a monetary policy regime. The study is conducted using the Indian economy as a case study. We conduct an in-depth sector-wise analysis of the Indian economy to evaluate the independence of India's monetary policy from fiscal, external, structural and financial perspectives. Dominance from any of these sectors may divert monetary policy from the objective of maintaining price stability in the economy. Our analysis suggests that among the four dominance issues, the issue of 'structural dominance??? is the most acute for India. Supply shocks, hitting the economy due to structural bottlenecks, pose a major threat to the independent conduct of monetary policy. This study concludes that inflation band targeting with a wide target range would be a feasible monetary policy option for India.India, Inflation Targeting, Monetary policy, Fiscal Dominance, VAR, GFVD

Multi Dimensional Deprivation in India during and after the Reforms: Do the Household Expenditure and the Family Health Surveys Present Consistent Evidence?

This paper uses the recent approach of multidimensional deprivation measures to provide a comprehensive and wide ranging assessment of changes to living standards in India during the period, 1992/93-2004/5.This covers the reforms and the immediate post reforms time periods. The study is based on the simultaneous use of two parallel data sets, namely the NSS and NFHS data sets covering proximate rounds and near identical time periods. The study is conducted both at regionally disaggregated levels and by socio economic groups. The deprivation dimensions range widely from the conventional expenditure dimensions to non expenditure dimensions such as access to drinking water and clean fuel, to health dimensions such as child stunting and the mother’s BMI. The use of decomposable deprivation measures allows the identification of regions, socio economic groups and deprivation dimensions that are contributing more than others to total deprivation.Multidimensional Deprivation, Social Exclusion, Decomposable Deprivation Measures, Scheduled Classes and Tribes, Clean Fuel, Stunted Children.

Prices, Inequality and Poverty: Methodology and Indian Evidence

The contribution of this paper is both methodological and empirical. It proposes a methodology for evaluating the distributional implications of price movement for inequality and poverty measurement. The methodology is based on a distinction between inequalities in nominal expenditures, where the expenditures are either measured in nominal terms or a common price deflator is applied for all households, and that in real expenditures which takes into account the varying household preferences and differences in household composition in converting the nominal to real expenditures. Changes in relative prices will cause the inflation to affect different household groups differently depending on their household size and composition and their level of relative affluence. The empirical application to the Indian budget data sets shows the usefulness of the proposed procedures. The Indian empirical evidence is of particular interest since the period chosen (1993-2005) covered both first and second generation reforms in India. The results suggest that while rural poverty rates, in both nominal and real terms, fell sharply during this period, they were accompanied by an increase in both nominal and real expenditure inequality. In contrast, the urban poverty rates were mostly static or even increased over this period. Of further interest is the result that the price movement in both areas has been inequality reducing throughout much of this period. The study also contains a decomposition analysis of the movement in inequality and poverty rates. The decomposition is done both between family types and between social groups.Real Expenditure Poverty, Inequality Decomposition, Scheduled Class, Equivalence Scales, Price Scaling

Multi Dimensional Deprivation in the Awakening Giants: A Comparative Study on Micro Data

This paper evaluates and compares multidimensional deprivation in India and China during the 1990s and beyond. The exercise is conducted on two micro data sets that have been tailor made for this study. It departs from the recent comparisons between India and China that are based on macro aggregates such as trade, investment and growth rates and undertakes a systematic and comprehensive analysis of living standards in the two countries based on unit record data. The paper disaggregates the overall deprivation by categories, and compares the deprivation distribution between the two countries. This study reports that the high growth rates did not translate into an unambiguous improvement in living standards in either country. Deprivation is still unacceptably high in some categories. While rural deprivation is much higher in India than in China, they face similar levels of urban deprivation. Special attention is paid to a comparison of child health, and its link with mother’s health, between the two countries. China outperforms India on child health with lower incidence of stunting and wasting. While both countries still record high rates of child stunting in the new millennium, wasting is much more of an issue in India than in China. The study provides evidence of strong link between deprivation in access to basic facilities, such as drinking water and clean fuel for cooking, and child undernourishment. The Indian evidence suggests that children of undernourished mothers are at high risk from stunting and wasting, but this does not extend to China. Notwithstanding evidence of decline in mother’s BMI over this period, China outperforms India on women’s health as well.Multi Dimensional Deprivation, Stunting, BMI, Anaemic Rates,Decomposability

Impact of peer relationship and exposure to violence on Posttraumatic Stress for children at risk for maltreatment

Post-traumatic Stress (PTS) symptomology includes ruminating thoughts and feelings around trauma, inability to feel and express emotions, and avoidance of things related to the traumatic event (American Psychiatric Association, 2000). Children and youth exposed to child maltreatment (abuse and neglect) are at higher risk of experiencing PTS. Extra-familial support, including peer support can reduce post-traumatic stress among youth (Pina et al., 2008). In the present study, Witnessing, Victimization, and Both Witnessing and Victimization due to Exposure to In-Home Violence and Peer Relationship Quality are evaluated as to their relative impact on PTS for children at risk for child maltreatment. Peer Relationship Quality is also tested as a moderator of the effects of violence exposures on PTS. Data come from the National Survey of Child and Adolescent Well-Being II (NSCAW II). Three waves of assessment were obtained starting in 2008 at 18 month intervals. A subsample of 2,151 children (2,071 children with non-missing values on the predictor, outcome and moderator variables) who were between the ages of 8 and 17 at any of the 3 waves was used. A three process latent linear growth model was estimated to assess PTS, Peer Relationship Quality and Exposure to In-Home Violence. Each of three Exposure to In- Home Violence constructs were assessed separately. Findings suggest that the average PTS at baseline was about 9.18 points (on a 32 point scale) and PTS declines by about 0.58 points every year on average. Additionally, baseline Peer Relationship Quality was predictive of baseline PTS with higher scores on Peer Relationship Quality associated with lower PTS at baseline. Moreover higher Peer Relationship Quality over time was associated with declines in PTS over time. The baseline effect of Exposure to In-Home Violence was positively associated with baseline PTS. So more Exposure to In-Home Violence was related to more post-traumatic stress. Change in witnessing violence at home over time and change in both witnessing and victimization over time were strongly positively associated with change in PTS over time. Peer Relationship Quality did not moderate the association between baseline Exposure to In-home Violence and PTS levels at baseline nor between baseline Exposure to In-Home Violence and change in PTS over time. These findings suggest several possible avenues for intervention for clinicians and help understand the dynamic associations between Exposure to In-Home Violence, Peer Relationship Quality and PTS in the population of children at risk for maltreatment

A review on Hepato-Protective Ayurveda Panchakarma Therapy and herbs used in Ayurveda

Liver is the largest gland and considered to be one of the vital organs which work multidimensional work for our body like digestion, growth and maintaining the health of body. In the Veda Yakrit (liver) is being described right from the Vedic period. Modern working culture and lifestyles can cause overstress and make it malfunctioning. There are no specific and safe hepato-protective drugs are available in contemporary medical science. While in Ayurveda, Panchakarma and defines herbs has the property to prevent, treat and cure hepatic disturbances with interception of fewer side effects. The purpose of this review is to elucidate the vital role of liver and aimed at compiling data based on reported works on Ayurveda Panchakarma procedure and Ayurveda herbs that have been tested in hepato-toxicity models and proved as hepato-protective. Also, the probable mode of action of Virechan (Panckarma procedure) and few herbs has been discussed in Ayurvedic and modern aspect

A comparative study of morbidity pattern among rural and urban postmenopausal women of Allahabad, Uttar Pradesh, India

Background: Menopause is an inevitable reproductive phase during midlife when various physical and mental changes may impair the quality of life of women. Middle-aged women may experience a wide range of physical and psychological symptoms. Decrease in the production of estrogen leads to the premenopausal symptoms of hot flushes, insomnia and mood changes, as well as post-menopausal osteoporosis and vaginal atrophy, leading to decrease in quality of life.Methods: Community based cross-sectional study. Door to door survey was conducted among women who had attained menopause for more than 1 year, in rural and urban area of Allahabad. Multistage random sampling was done. 400 postmenopausal women, 200 each from rural and urban area were selected. A pre-tested structured questionnaire was used for data collection.Results: Majority were in the age group of 50-60 years followed by 60-70 years. Majority of women were having a parity of 3. Vasomotor symptoms were experienced by 34.5% and 39.5% rural and urban women respectively. Out of total post-menopausal women who reported genitourinary complaints, the most commonly reported complaint was stress incontinence i.e. 10.5% and 8.5% respectively in rural and urban communities followed by increased urinary frequency i.e. 9% and 7.5% respectively in rural and urban areas. Vaginal dryness was reported by 2.5% of rural women and 6% of urban women. Vaginal discharge was reported by 7% of rural and 4% of urban women. Uterine Prolapse was reported by 6% of rural women and 3.5% of urban women.Conclusions: The study shows that postmenopausal women in India suffer from various vasomotor, physical as well as psychiatric problems related to menopausal hormonal changes with varied frequencies. There is a need to address their problem and establish health care centers for them. Postmenopausal women should be sensitized for availing the health facilities for their health problems by information education and communication (IEC) and behaviour change communication (BCC). Family support should be ensured by creating awareness in community. Awareness regarding menopause and problems among women related to it need to be improved. Health workers, ASHA, Aanganwadi workers can help women to understand about the menopausal symptoms, if they are given adequate training

IoT in HEALTHCARE DOMAIN

In the current scenario, the Internet of Things (IoT) is an emerging technology. IoT is a new pattern that has changed the long-established way of living into a modernistic life style. IoT is the network of physical objects, which enables to collect data and exchange it without human intervention. In general, IoT has been established to interlink the latest healthcare resources and to provide smart and efficient healthcare facilities to the people. IoT allows objects to be sensed and controlled remotely across existing network infrastructure. Health maintenance has become a considerable socio-economic concern when it comes to health expenses, need and accessibility of resources, and individual care especially for aged people of the society. The central objective of this review article is to give a detailed idea on different trends and applications of smart healthcare as well as the common challenges in the execution are discussed