India has experienced persistently high inflation in recent years, despite a period of below-trend economic growth. As a result, controlling inflation has become a key objective for policymakers. The two main indicators of inflation in India are the wholesale price index (WPI) and the consumer...

This paper uses cointegration and vector auto regression techniques to examine which, if any, of the financial aggregates - the monetary base, M1, M2 or credit - is an appropriate intermediate target for the Thai monetary authorities. From the spectrum of monetary aggregates, M1 seems to be the...

We study whether central banks should respond to asset prices in their policy rules. Using a modified version of Bernanke, Gertler and Gilchrist's (1999) model—a standard dynamic stochastic general equilibrium New Keynesian model with a financial accelerator effect—we explore how equilibrium...