In practice, monetary policy changes tend to produce a smooth path for interest rates while the path of policy interest rates generated by models is often considerably more variable. This paper investigates whether the inclusion of uncertainty can help reconcile the theory to the practice. It...

Standard solution methods for linear stochastic models with rational expectations presuppose a time-invariant structure as well as an environment in which shocks are unanticipated. Consequently, credible announcements that entail future changes of the structure cannot be handled by standard...

India has become an increasingly important part of the global economic landscape over the past decade. Its economy has become more open to international trade, its workforce is growing strongly and the rate of investment has picked up following economic reforms. The strong growth of the Indian...

This article discusses the key developments in the agricultural sector in India including productivity gains and integration with global food markets, before discussing some of the challenges for future development, which include land distribution policies, access to credit, water management,...