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An augmented P-star model of Indian inflation

Author

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  • Peter Holzschuh
  • Ankita Mishra
  • Jayant Misra
  • Imad A. Moosa
  • Shyam Nath
  • George B. Tawadros

Abstract

An augmented P-Star model is estimated and tested to identify the drivers of inflation in India. The model includes monetary and non-monetary factors, demand-pull and cost-push factors, and domestic as well as foreign factors. The results show that inflation in India is driven by a combination of monetary factors and non-monetary factors, some of which affect inflation on the supply side while others operate on the demand side. It turns out, however, that inflation in India is determined more by domestic rather than foreign factors.

Suggested Citation

  • Peter Holzschuh & Ankita Mishra & Jayant Misra & Imad A. Moosa & Shyam Nath & George B. Tawadros, 2020. "An augmented P-star model of Indian inflation," Applied Economics, Taylor & Francis Journals, vol. 52(26), pages 2795-2806, May.
    • Handle: RePEc:taf:applec:v:52:y:2020:i:26:p:2795-2806
    DOI: 10.1080/00036846.2019.1696935
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    Cited by:

    1. Lucia Mandongwe & Stanley Murairwa & Phamela Dube, 2022. "A Theoretical Assessment of the Operational Budgets in Hyperinflation Countries, Lessons from Boarding Schools in Zimbabwe: Effects and Survival Strategies," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(6), pages 669-677, June.

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