Impact of Monetary Policy Transmission on the Demographic in India: A Structural VAR Approach-Reference-Cited by-同舟云学术

Impact of Monetary Policy Transmission on the Demographic in India: A Structural VAR Approach

Published:2023-09-01 Issue:3 Volume:4 Page:
ISSN:2652-8681
Container-title:Asian Economics Letters
language:en
Short-container-title:

Author:

Jena Pabitra Kumar¹^ORCID,Sharma Raghav²,Dehury Tania³,Nayak Sasmita⁴

Affiliation:

1. Shri Mata Vaishno Devi University, Katra, India

2. Foundation for Economic growth and Welfare (EGROW Foundation), Arun Vihar, Noida, India

3. Enterprise Risk Management- Saudi Sovereign Wealth Fund (PIF), Riyadh, Saudi Arabia

4. Choudhary Charan Singh University Meerut, India

Abstract

This study explores the relationship between monetary policy instruments and India’s demographic structure, to understand how these instruments interact with the population composition. To trace the relationship, this study has considered annual data from 1993-2018. Using the structural vector autoregression (VAR) with restrictions and considering various macroeconomic variables, the study shows a significant relationship between the monetary policy variable represented by the repo rate and the demographic structure represented by the working-age population. Overall, the study concludes that demographic shifts affect monetary policy effectiveness.

Publisher

Asia-Pacific Applied Economics Association

Subject

General Medicine

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