addition, the RBI appears to be more averse to a positive inflation gap as compared to an equal negative gap. …

addition, the RBI appears to be more averse to a positive inflation gap as compared to an equal negative gap. …

achieving their explicit inflation targets. For this purpose, we decompose the inflation gap, the difference between actual … the predictable component in the inflation gap diminishes over time. The predictable component of inflation gap is …

gap. These results suggest that the Federal Reserve Bank would reduce money supply if the output gap or the inflation gap … supply has a positive relationship with the interest rate and a negative relationship with the output gap and the inflation …

economic activity decreases and the persistence of the inflation gap increases due to an increase in the persistence of the …