Indira Gandhi Institute of Development Research

About: Indira Gandhi Institute of Development Research is a facility organization based out in Mumbai, Maharashtra, India. It is known for research contribution in the topics: Monetary policy & Inflation. The organization has 307 authors who have published 1021 publications receiving 18848 citations.

Global Crisis, Regulatory Reform and International Policy Coordination

Abstract: The recent global crisis has brought the following issues to the forefront of macro-policy analysis: (a) procyclicality of bank capital regulation, (b) role of asset bubbles, (c) high social costs ...

The Impact of Structure and Openness on The Causal Ordering Of Interest, Inflation and Exchange Rates

Abstract: In a country with a very large population at low per capita income, the interaction between the price of food and wages is a major determinant of inflation. But, with liberalisation, as agricultural prices approach border prices, the exchange rate influences the inflationary process. The gap between the actual exchange rate and the exchange rate that satisfies a wage target affects inflation. Thus supply side influences dominate the inflationary process. Then monetary policy acts upon interest and equilibrium exchange rates, thus influencing expected depreciation. Key results are that monetary tightening, in the face of a supply shock, can lead to an expected depreciation of the real exchange rate. Equilibrium real appreciation occurs if net investment rises, and rising agricultural productivity raises the feasible non-inflationary exchange rate, and real wages. The analysis of the interaction between agriculture and industry changes, since agricultural markets adjust to equilibrium through quantities rather than prices. The framework is found to be usefully in interpreting a narrative history of recent macroeconomic trends in India.

Conservation and deferral potentials of demand side management programmes: A case study

Abstract: Demand side management options (DSMO) can reduce the peak electricity demand for utilities. This reduction in demand is helpful to the utility in at least two ways : first, it minimizes the penalty costs of not being able to meet the peak demand and thus it has the potential to reduce costs ; second, it also can defer the need for building new power plants and hence it can release, at least for some period of time, the scarce capital (which is especially important for the developing countries) for use in development activities elsewhere. These two benefits have been considered in detail in the paper. An analytical model has been developed to estimate the conservation potential of the DSM programmes. The model is then used to illustrate the benefit derived by deferring the construction of a new power plant. The model has been applied to the Maharashtra State Electricity Board, an electric utility in India, as a case study. Several scenarios have been constructed to account for different levels of the DSM possibilites. A sensitivity analysis has been carried out to tackle some of the uncertainties associated with the assumptions in the analysis.

Safe Gambles? Farmer perceptions of transactional certainty and risk-return tradeoffs in contract farming schemes in Southern India

Abstract: This paper examines the idea that contract farming arrangements in developing countries even while offering farmers insurance against certain kinds of risks could simultaneously exacerbate other risks or entail new risks of their own. If correct, farmer perceptions of risks and returns would vary systematically across farmers with different contracting status and also across schemes. Using survey data that elicits subjective distributions of returns and psychometric mapping of risk perceptions from farmers, the study finds that contract farming, not unlike its alternatives, is associated with multiple dimensions of uncertainty and sources of risk, in ways that likely influence participation.

Is the supply of long-term debt independent of the term premia? Evidence from Portugal

Abstract: An important assumption in the statistical analysis of the financial market effects of the central bank's large scale asset purchase program is that the 'long-term debt stock variables were exogenous to term premia'. We test this assumption for a small open economy in a currency union over the period 2000M3 to 2015M10, via the determinants of short term financing relative to long-term financing. Empirical estimations indicate that the maturity composition of debt does not respond to the level of interest rate or to the term structure. These findings suggest a lower adherence to the cost minimization mandate of debt management. However, we find that volatility and relative market size respectively decrease and increase short-term financing relative to long-term financing, while it decreases with an increase in government indebtedness.