We attempt to explore the long-term equilibrium relationship between India’s real exchange rates and sectoral productivity trends using internationally comparable productivity databases such as KLEMS databases for India, China, Euro area, USA, UK and Japan. Our panel-ARDL results find support...

The conventional estimate of technological progress and aggregate productivity growth, the total factor productivity, or TFP, can be upwardly biased if environmental externalities generated during the production processes are not accounted for. In this paper, we revisit TFP growth rates across...

The paper investigates whether the effects of monetary policy on firm investment can be transmitted through leverage. The findings indicate that monetary contractions reduce investment for highly leveraged firms. The estimates imply that a 1percentage point increase in leverage reduces...

In this paper, we try to explain the role of Non-bank Financial Intermediation (NBFI) to percolate and propel a real shock to the rest of the economy through the bank-NBFI interactions. We propose a simple theoretical model which identifies the channels and distinguishes between idiosyncratic,...

In this paper, we attempt to identify silver bullets for a resilient post-Covid recovery, in the context of bank-dominated emerging market economies (EME). Our empirical findings using Indian data, business cycle dating, and dynamic factors analysis indicate that both private consumption and...

Our paper attempts to identify policy `silver bullets' that ascertain a sustainable growth revival in the aftermath of the COVID-19 shock. The study focuses on India, one of the largest emerging market economies of strategic importance, globally. Using a novel business cycle dating algorithm, we...

The realty sector plays a crucial role in India in terms of employment generation, access to housing and as a major source of saving in physical form, besides direct contribution to the country’s Gross Value Added (GVA). In this study, we estimate a dynamic factor for housing (DFH) from a...

In India, the first official estimate of quarterly GDP is released approximately 7-8 weeks after the end of the reference quarter. To provide an early estimate of the current quarter GDP growth, we construct a Coincident Economic Indicator for India (CEII) using 6, 9 and 12 high-frequency...

We simulate a DSGE model with state owned banks to analyze the impact of bank recapitalization as a policy action in response to loan defaults by firms. As a special case, we calibrate the model to India, an emerging economy with state-owned banks facing a minimum investment requirement in safe...

The manufacturing Purchasing Managers’ Index is often used by policy makers to gauge the ‘nerve’ of the real economy and as lead indicator of industrial activity. This paper makes an effort to evaluate whether the PMI is indeed a good lead indicator of IIP or whether by relying on PMI the...