Today the Reserve Bank of India released on its website the DRG Study1 titled, “Anatomy of Price Volatility Transmission in Indian Vegetables Market”. The study is co-authored by Puja Padhi, Himani Shekhar and Akanksha Handa. The study investigates the horizontal and vertical volatility transmission for three key vegetables viz., tomato, onion and potato (TOP). Horizontal volatility transmission relates to transmission from one vegetable to another, while vertical vol

Today the Reserve Bank of India released on its website the DRG Study1 titled, “Determinants of Financial Literacy and Financial Inclusion in North-Eastern Region of India: A Case Study of Mizoram”. The study is co-authored by Bhartendu Singh, Raj Rajesh, Ramesh Golait and K. Samuel L. The study evaluates the determinants of financial inclusion and financial literacy in the under-banked north-eastern region of India based on primary data collected through a survey in

The Reserve Bank of India today released on its website the DRG Study* titled, “Governance, Efficiency and Soundness of Indian Banks”. The study is co-authored by Rachita Gulati, Sunil Kumar, S. Chinngaihlian, Rajendra Raghumanda and Prabal Bilantu. This study adopts a granular research approach and empirically explores the nexus between governance, efficiency and soundness in the Indian banking industry at various disaggregation levels using the dynamic panel data mo

The Reserve Bank of India today released on its website the DRG Study* titled, “Risk Premium Shocks and Business Cycle Outcomes in India”. The study is co-authored by Dr. Shesadri Banerjee, Shri Jibin Jose, and Shri Radheshyam Verma. This study investigates the dynamic effects of financial shocks on the business cycle. Against the backdrop of high non-performing assets (NPAs) of banks, a financial shock is conceived to be a shock to the interest rate spread stemming f

The Reserve Bank of India today released on its website the DRG Study* titled, “Threshold Level of Inflation – Concept and Measurement”. The study is co-authored by Professor Ravindra H. Dholakia, Dr. Jai Chander, Smt. Ipsita Padhi and Shri Bhanu Pratap. The study examines the concept of threshold inflation and defines it as the long run equilibrium rate of inflation that maximises the steady state growth within the relevant range of values. The empirical findings of

The Reserve Bank of India today released on its website the DRG Study titled, “Role of Financial Frictions in Monetary Policy Transmission in India”. The study is co-authored by Dr. Shesadri Banerjee, Dr. Harendra Behera, Shri Sanjib Bordoloi and Shri Rakesh Kumar. The study developed a New Keynesian Dynamic Stochastic General Equilibrium (NK-DSGE) model with an imperfectly competitive banking sector and examined the role of various financial frictions in monetary pol

The Reserve Bank of India today released on its website the DRG study* titled, “Some Macroeconomic Impacts of Different Types of Public Expenditure in India - Analysis Using a Computable General Equilibrium Model”. The study is co-authored by Prof. A. Ganesh-Kumar, Bipul K. Ghosh, Khaijamang Mate and Prayag Singh Rawat. The study examines the impact of various types of government expenditure on Indian economy using a recursively dynamic computable general equilibrium

The Reserve Bank of India today released on its website the DRG study* titled, “Shocks and Inflation”. The study is authored by Prof. M. Ramachandran, Pondicherry University and Shri Rakesh Kumar, Assistant Adviser, Reserve Bank of India. In general, shocks induced by supply side factors are believed to have no long-lasting impact on inflation. Therefore, inflation driven by supply shocks does not warrant any policy intervention. This DRG study documents empirical evi

The Reserve Bank of India today released on its website the DRG study* titled, “Trade Policy and Manufacturing Performance: Exploring the level of Trade Openness in India’s Organised Manufacturing in the period 1990-2010”. The study is authored by Dr. Deb Kusum Das, Department of Economics, Ramjas College, University of Delhi. The study covers the organised manufacturing sector and use-based sectors of organized manufacturing during the period 1990-91 to 2009-10. The

The Reserve Bank of India today released on its website the DRG Study titled, “A Study of Corporate Bond Market in India: Theoretical and Policy Implications”. The study is co-authored by Prof. Sunder Raghavan, Professor of Finance, Embry-Riddle Aeronautical University; and Shri Ashok Sahoo, Director, Financial Stability Unit; Shri Angshuman Hait Assistant Adviser, Department of Statistics and Information Management; and Dr. Saurabh Ghosh, Assistant Adviser, Departmen

The Reserve Bank of India released today the DRG Study titled, “Modelling Currency Demand in India: An Empirical Study”. The study is co-authored by Dr. D. M. Nachane, A. B. Chakraborty, A. K. Mitra and Sanjib Bordoloi. The main objective of the study was to examine evolving determinants of currency demand in the Indian context and develop a suitable framework for modelling currency demand at the aggregate level as well as for the denominational composition. Main feat

The Reserve Bank released today the DRG Study on “Pricing of Paddy: A Case Study of Andhra Pradesh” authored by Dr. Ramana Murthy and Smt. Rekha Misra. From this DRG Study Series No. 38 onwards, Reserve Bank will be only web hosting the DRG Studies and no printed version will be made available. The main purpose of this Study was to look into, inter alia, the extent of the gap between minimum support price (MSP), the rate at which the farmer is able to sell the produce

The Reserve Bank of India today released a DRG Study entitled, “Productivity, Efficiency and Competitiveness of the Indian Manufacturing Sector”. The study is co-authored by Prof. Pushpa Trivedi (Indian Institute of Technology Bombay), Shri L. Lakshmanan (Assistant Adviser, Internal Debt Management Department), Dr. Rajeev Jain (Assistant Adviser, Department of Economic and Policy Research) and Dr. Yogesh Kumar Gupta (Assistant Adviser, Department of Statistics and Inf

The Reserve Bank of India today has released a DRG Study entitled, “The Divisia Monetary Indices as Leading Indicators of Inflation”. The study is co-authored by Prof. M. Ramachandran, Professor in the Department of Economics at the Pondicherry University, Shri Rajib Das, Director and Shri Binod B. Bhoi, Assistant Adviser, in the Department of Economic Analysis and Policy of the Reserve Bank. The study suggests that the Reserve Bank could closely observe the growth ra

The Reserve Bank of India today released a DRG Study entitled, ‘Regional Inequalities in India in the 1990s: Trends and Policy Implications’. The Study is co-authored by Dr. Nirvikar Singh, Professor, University of California, Santa Cruz, USA along with Mr. Jake Kendall, World Bank, Shri R. K. Jain, Director, DEAP and Dr. Jai Chander, Assistant Adviser, DEAP. There are concerns that the regional inequalities have accentuated in the post reform period. While several st

The Reserve Bank of India released a DRG Study entitled, “GDP-Indexed Bonds’. The Study is co-authored by Prof. Errol D’Souza, Professor, Indian Institute of Management, Ahmedabad along with Shri Sanjay Kumar, Assistant Adviser, IDMD, Dr. Kumarjit Mandal, former Research Officer, DEAP and Shri Vineet Virmani, Assistant Vice President, Quantitative Risk Team, Nomura Services India Ltd. After the wave of financial and debt crisis in a number of emerging markets in the 1

The Reserve Bank of India released a DRG Study entitled, “Exchange Rate Policy and Modelling in India’. The Study is co-authored by Prof. Pami Dua, Professor in the Department of Economics of Delhi School of Economics along with Dr. Rajiv Ranjan, Director in the Department of Economic Analysis and Policy of the Reserve Bank of India. The study covers two main topics: first, various aspects of economic policy with respect to the exchange rate and second, modelling and

The Reserve Bank of India released a DRG Study entitled, “Monetary Policy, Forex Markets and Feedback under Uncertainty in An Open Economy”. The Study is co-authored by Prof. Ashima Goyal, Indira Gandhi Institute of Development Research along with staff members from the Reserve Bank (Shri Ayyappan Nair, Assistant General Manager, Financial Markets Department and Dr. Amaresh Samantaraya, Assistant Adviser, Department of Banking Supervision). The Study attempted to exam

The Reserve Bank of India released today two studies - “Introducing Expenditure Quality in Intergovernmental Transfers: A triple-E Framework” and "An Outline of Post 2009 FRBM Fiscal Architecture of the Union Government in the Medium Term" relating to the terms of reference of the Thirteenth Finance Commission. The first study entitled “Introducing Expenditure Quality in Intergovernmental Transfers: A triple-E Framework” is co-authored by Prof. Mala Lalvani, Departmen

A Reserve Bank of India study, released today - "Strengthening Decentralisation - Augmenting the Consolidated fund of the States by the Thirteenth Finance Commission: A Normative Approach" relates to the terms of reference of the Thirteenth Finance Commission. The authors of the Study Shri Abhay Pethe, University of Mumbai along with research staff members from the Reserve Bank (Shri B.M. Misra, Adviser, DEAP and Kum. Rakhe P.B., Research Officer, DEAP) opine that the