Seminar by Aditi Singh (Shiv Nadar Institution of Eminence)

Centre for Development Economics
Department of Economics
Delhi School of Economics

ANNOUNCE A SEMINAR

by

Venue: Amex Room

Abstract:-
This paper studies the real effects of monetary policy in India. Using household-level data, we find that monetary policy shocks significantly impact household consumption. These effects are heterogeneous across households, depending on their wealth holdings. Motivated by the importance of the marginal propensity to consume (MPC) in models evaluating monetary policy transmission, we calculate MPCs separately for different household groups. Specifically, we classify households into three categories — poor hand-to-mouth, wealthy hand-to-mouth, and non hand-to-mouth — and estimate the MPC for each group. We document substantial heterogeneity in these responses, suggesting that monetary policy transmits very differently across the wealth distribution.

All are cordially invited.

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