{
  "title": "What is Responsible for India’s Sharp Disinflation?",
  "publication": "IMF Working Papers, August 8, 2016",
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  "summary": "We analyze the dramatic decline in India’s inflation over the last two years using an augmented Phillips Curve approach and quantify the role of different factors.",
  "sections": [
    {
      "heading": "Methodology",
      "content": "- Analysis using an augmented Phillips Curve approach."
    },
    {
      "heading": "Key findings",
      "content": "- The dramatic decline in India’s inflation over the last two years is analyzed and decomposed.\n- The direct role of lower oil prices in India’s disinflation was relatively modest given the limited pass-through into domestic prices.\n- Inflation in India is a highly persistent process, reflecting:\n  - very adaptive expectations, and\n  - the backward looking nature of wage and support price-setting.\n- A moderation of expectations, both backward and forward, and a rationalization of Minimum Support Prices (MSPs) explain the bulk of the disinflation over the last two years."
    },
    {
      "heading": "Policy implications / recommendations (as implied by findings)",
      "content": "- Addressing adaptive expectations could be central to sustaining lower inflation.\n- Rationalization of Minimum Support Prices (MSPs) is an important factor in managing inflation dynamics.\n\n---\n\n Content in this bundle\n\n- What is Responsible for India’s Sharp Disinflation?\n  - What is Responsible for India’s Sharp Disinflation? (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - What is Responsible for India’s Sharp Disinflation? (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/what-is-responsible-for-indias-sharp-disinflation-44175"
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    "Authors: Sajjid Chinoy, Pankaj Kumar, Prachi Mishra",
    "Published: August 8, 2016",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475523935.001",
    "Analysis using an augmented Phillips Curve approach.",
    "The dramatic decline in India’s inflation over the last two years is analyzed and decomposed.",
    "The direct role of lower oil prices in India’s disinflation was relatively modest given the limited pass-through into domestic prices.",
    "Inflation in India is a highly persistent process, reflecting:",
    "A moderation of expectations, both backward and forward, and a rationalization of Minimum Support Prices (MSPs) explain the bulk of the disinflation over the last two years.",
    "Addressing adaptive expectations could be central to sustaining lower inflation.",
    "Rationalization of Minimum Support Prices (MSPs) is an important factor in managing inflation dynamics.",
    "**What is Responsible for India’s Sharp Disinflation?**"
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