Quarterly Projection Model for India: Key Elements and Properties

Author/Editor:

Jaromir Benes ; Kevin Clinton ; Asish George ; Pranav Gupta ; Joice John ; Ondrej Kamenik ; Douglas Laxton ; Pratik Mitra ; G.V. Nadhanael ; Rafael A Portillo ; Hou Wang ; Fan Zhang

Publication Date:

February 13, 2017

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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.

Series:

Working Paper No. 2017/033

Subject:

English

Publication Date:

February 13, 2017

ISBN/ISSN:

9781475578706/1018-5941

Stock No:

WPIEA2017033

Pages:

41

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