Archive for December 9th, 2014

Monetary Policy Transmission in India: Pre and Post LAF period

December 9, 2014

A nice research by Nandini Sengupta of KC College Mumbai.

She looks at the impact of monetary policy on things like credit markets, asset markets, interest rate and so (this is standard monetary policy transmission). More importantly, the paper divides the research into two periods- pre LAF (before 2000) and post LAF (post 2000) and sees whether the transmission has changed in the transition. The findings are:

It is found that the bank lending channel remains an important means of transmission of monetary policy in India, but it has weakened in the post-LAF period. The interest rate and asset price channels have become stronger and the exchange rate channel, although weak, shows a mild improvement in the post-LAF period.

Bank lending channel has weakened as now firms have much wider choices to raise capital. Banks are not the only option..

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Suburban rail 20 times cheaper than Metro..

December 9, 2014

Well, one did not really need a study to prove this. But anyways, we have some research and that too from a reliable source IISC. There was an interesting paper on the same topic in EPW as well.

The study shows suburban train is way cheaper than metros:

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