@techreport{oai:ir.ide.go.jp:00037968,
 author = {Inoue, Takeshi and Hamori, Shigeyuki},
 month = {Apr},
 note = {application/pdf, IDP000200_001, This paper empirically analyzes India’s monetary policy reaction function by applying the Taylor
(1993) rule and its open-economy version which employs dynamic OLS. The analysis uses
monthly data from the period of April 1998 to December 2007. When the simple Taylor rule was
estimated for India, the output gap coefficient was statistically significant, and its sign condition
was found to be consistent with theoretical rationale; however, the same was not true of the
inflation coefficient. When the Taylor rule with exchange rate was estimated, the coefficients of
output gap and exchange rate had statistical significance with the expected signs, whereas the
results of inflation remained the same as before. Therefore, the inflation rate has not played a role
in the conduct of India’s monetary policy, and it is inappropriate for India to adopt an
inflation-target type policy framework.},
 title = {An Empirical Analysis of the Monetary Policy Reaction Function in India},
 year = {2009}
}