1. – Research Scholar, Department Of Economics, Panjab University, Chandigarh
| Received
11-Mar-2020 |
Accepted
- |
Published
11-Mar-2020 |
Abstract
This paper examines the effectiveness
and relative strength of various
channels of monetary policy
transmission in India during the
post reform period using the
monthly data spanning over
1991:M4 to 2017:M12. The
analysis has been via regular and
seasonal unit root methods and
graphical method has been applied
for identification of structural
breaks. Alternative methods
namely, HEGY, Augmented Dickey
Fuller (ADF), Phillips-Perron
(PP), KPSS and DF-GLS have
been applied for testing the presence
of seasonal and regular unit
roots. The long-run and short-run
behaviors of different channels
have been analyzed through
Structural Vector Error Correction
Model (VECM). In India, first and
second important channels of
monetary policy transmission
mechanism are Credit and Interest
rate.
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