<p>This study is an empirical analysis to find out the major factors that determine inflation in India. The long run and short run relationships between inflation and other macroeconomic indicators such as per capita GDP, money supply, international oil price and exchange rate are determined using Cointegration method and Vector Auto regression model (VAR) respectively. The annual data of these variables from 1980 to 2013 is used for the study. The study finds that there is a long term as well as short term relationship between Inflation (measured using CPI) and exchange rate where as there is a short term relationship between Inflation and per capita GDP. © 2015 IEEE.</p>
cited By 0; Conference of International Conference on Advances in Computing, Communications and Informatics, ICACCI 2015 ; Conference Date: 10 August 2015 Through 13 August 2015; Conference Code:115835
A. Mohan and Dr. P. Balasubramanian, “Factors affecting inflation in India: A cointegration approach”, in 2015 International Conference on Advances in Computing, Communications and Informatics, ICACCI 2015, 2015, pp. 855-858.