arbiter
JournalsPricingAccount

Monetary Policy and Financial Stability in India

Neha Verma & Deepika Goel

Journal of Business Thought2024https://doi.org/10.18311/jbt/2024/44735article
ABDC C
Weight
0.30

What the paper says

With rising geoeconomic tensions and financial fragmentation, financial instability concerns are becoming deeper and more persistent for emerging economies like India. Post the Global Financial Crisis (GFC) of 2008, the spotlight turned to the possible role of monetary policy in ensuring financial stability in addition to the mandated goals of price and output stability. This paper aims to estimate the dynamics between monetary policy and financial stability in India using a Structural Vector Auto Regressive (SVAR) model based on monthly data from January 2011 to April 2024. Financial stability is measured along three dimensions: banking, stock market, and external stability. We find significant evidence of bank credit and exchange rate channels, while the asset price channel has weaker evidence. There is evidence of high risktaking behaviour of banks in the case of expansionary monetary policy, pressing for the role of regulatory and prudential policies.

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.18311/jbt/2024/44735

Or copy a formatted citation

@article{neha2024,
  title        = {{Monetary Policy and Financial Stability in India}},
  author       = {Neha Verma & Deepika Goel},
  journal      = {Journal of Business Thought},
  year         = {2024},
  doi          = {https://doi.org/https://doi.org/10.18311/jbt/2024/44735},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Monetary Policy and Financial Stability in India

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.30

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.00 × 0.4 = 0.00
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.