IMF Working Papers

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Jaromir Benes, Kevin Clinton, Asish George, Pranav Gupta, Joice John, Ondrej Kamenik, Douglas Laxton, Pratik Mitra, G.V. Nadhanael, Rafael A Portillo, Hou Wang, and Fan Zhang. Quarterly Projection Model for India: Key Elements and Properties, (USA: International Monetary Fund, 2017) accessed September 18, 2024

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Summary

This paper outlines the key features of the production version of the quarterly projection model (QPM), which is a forward-looking open-economy gap model, calibrated to represent the Indian case, for generating forecasts and risk assessment as well as conducting policy analysis. QPM incorporates several India-specific features like the importance of the agricultural sector and food prices in the inflation process; features of monetary policy transmission and implications of an endogenous credibility process for monetary policy formulation. The paper also describes key properties and historical decompositions of some important macroeconomic variables.

Subject: Central bank policy rate, Financial services, Food prices, Inflation, Inflation targeting, Monetary policy, Output gap, Prices, Production

Keywords: Central bank policy rate, Core inflation, Food inflation, Food prices, Forecasting models, Global, Inflation, Inflation episodes in India, Inflation expectation, Inflation target, Inflation targeting, Interest rate, Model calibration, Monetary policy, Monetary policy models, Monetary policy rules, Monetary policy simulations, Output gap, Reaction function, Reserve Bank of India, Transmission mechanism, WP

Publication Details

  • Pages:

    41

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2017/033

  • Stock No:

    WPIEA2017033

  • ISBN:

    9781475578706

  • ISSN:

    1018-5941