The impact of restrictive monetary policy in emerging countries

Mishra, Akanksha and Dubey, Amlendu (2025) The impact of restrictive monetary policy in emerging countries. Structural Change and Economic Dynamics, 74. pp. 915-927. ISSN 0954349X

[thumbnail of 1-s2.0-S0954349X25001146-main.pdf] Text
1-s2.0-S0954349X25001146-main.pdf - Published Version
Restricted to Repository staff only

Download (909kB) | Request a copy

Abstract

We study the sacrifice ratios for 465 disinflationary episodes in emerging market and developing economies using a dataset of 123 countries during 1979 to 2023. We find that average output cost of disinflation was significantly higher during COVID-19 period as compared to the previous disinflationary episodes, suggesting that supply side disruptions elevated the output costs of monetary tightening during the period. Further, we find that speed of disinflation and peak inflation significantly reduce sacrifice ratios suggesting a role for “cold turkey” approach as against the gradualism.

Item Type: Article
Subjects: Social Sciences and humanities > Economics, Econometrics and Finance > Econometrics
Social Sciences and humanities > Economics, Econometrics and Finance > Economics
Social Sciences and humanities > Economics, Econometrics and Finance > Statistics and Probability
Social Sciences and humanities > Social Sciences > Development
JGU School/Centre: Jindal Global Business School
Depositing User: Mr. Gautam Kumar
Date Deposited: 03 Jul 2025 08:20
Last Modified: 03 Jul 2025 08:20
Official URL: https://doi.org/10.1016/j.strueco.2025.06.016
URI: https://pure.jgu.edu.in/id/eprint/9749

Downloads

Downloads per month over past year

Actions (login required)

View Item
View Item