Please use this identifier to cite or link to this item: http://hdl.handle.net/11718/17101
Full metadata record
DC FieldValueLanguage
dc.contributor.authorChakrabarti, Anindya
dc.date.accessioned2015-12-31T11:29:41Z
dc.date.available2015-12-31T11:29:41Z
dc.date.copyright2015
dc.date.issued2015
dc.identifier.urihttp://hdl.handle.net/11718/17101
dc.description.abstractThis paper studies the effects of monetary policies in newly industrialized economies characterized by extremely low level of labor and capital mobility between urban and rural sectors. Policies are executed in the urban sector which sends waves of adjustments in the rest of the economy. I show that with liquidity constraints and immobility in labor and capital, the sector- specific effects are markedly different from those in a one-sector economy. In particular, they are asymmetric and the rural sector lags behind the urban sector during the adjustment process. This explains temporary phases of significantly high inflation with uneven sectoral effects which often accompany major reforms in the banking and monetary institutions of such economies, e.g. in case of India. Finally, as the consumption patterns alter in such an economy undergoing structural changes, the sectoral distribution of liquidity is affected inducing dissimilar responses to shocks, both within and between sectors.en_US
dc.language.isoenen_US
dc.publisherIndian Institute of Management Ahmedabaden_US
dc.subjectNewly industrialized economyen_US
dc.subjectMarket rigidityen_US
dc.subjectFrictionsen_US
dc.subjectSticky priceen_US
dc.subjectLiquidity shocksen_US
dc.titleIn ationary e ects of monetary policies in newly industrialized economies with cross-sectoral labor and capital immobilityen_US
dc.typeWorking Paperen_US
Appears in Collections:Working Papers

Files in This Item:
File Description SizeFormat 
WP2015-08-07.pdf430.46 kBAdobe PDFView/Open


Items in IIMA Institutional Repository are protected by copyright, with all rights reserved, unless otherwise indicated.