Abstract
We analyze post 1991 liberalization Indian economy using the Monetary Business Cycle Accounting framework. We use quarterly National Accounts data from 1996.Q1-2017.Q4, and we find that efficiency wedges explain up to 68% of fluctuations in output and 40% of hours worked, while investment wedges explain up to half of consumption and investment. Up to 42% of inflation is accounted for by the Taylors rule wedge. We also show that non-food credit to nominal GDP ratio correlates with investment wedge, and total emoluments to profits ratio correlates with labor wedge.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
