Evaluating inflation targeting as a monetary policy objective for India

This study formulates a small open economy model for India with exchange rate as a prominent channel of monetary policy. The model is estimated using the Instrumental Variable-Generalized Methods of Moments (IV-GMM) estimator and evaluated through simulations. This study compares different cases of domestic and CPI inflation targeting, strict and flexible inflation targeting, and simple Taylor type rules. The analysis highlights the unsuitability of simple Taylor-type monetary rules in stabilizing the Indian economy and suggests that discretionary optimization works better in stabilizing this economy. There seems to be a trade-off between output gap stabilization and exchange rate stabilization in flexible domestic inflation targeting and CPI inflation targeting respectively. However, flexible domestic inflation targeting seems a better alternative from an overall macro stabilization perspective in India where financial markets are still not sufficiently integrated to ensure quick transmission of interest rate impulses and existence of rigidities in the economy.     

Hospitality managers' importance perceptions of human resource practices related to employment of foreign workers in the United States

ABSTRACT

Cross-border labor mobility of hospitality employees has resulted in an increase in illegal immigrants in the workforce. The purpose of this study was to generate a list of top legal issues associated with the employment of foreign workers in the U.S. hospitality industry and to identify factors defined by the importance ratings of these issues. Snowball sampling was used to collect data from hospitality managers. Findings reveal that respondents perceive document verification to be important but may not perceive knowledge of various visa types and employment termination reporting procedures associated with employing foreign workers to be important. Managerial implications are discussed.     

Inflation targeting in India: A comparison with the multiple indicator approach

The empirical literature on identification and measurement of the impact of monetary policy shocks on the real side of the economy is fairly comprehensive for developed economies, but very limited for emerging and transition economies. In this study, we propose an identification scheme for a developing economy (taking India as a case study), which is able to capture the monetary transmission mechanism for that economy without giving rise to empirical anomalies. Using a VAR approach with recursive contemporaneous restrictions, we identify monetary policy shocks by modelling the reaction function of the central bank and structure of that economy. The effect of monetary policy shocks on the exchange rate and other macroeconomic variables is consistent with the predictions of a broad set of theoretical models. This set-up is used to build a hypothetical case of inflation targeting where the monetary policy instrument is set after assessing the current values of inflation only. This is in contrast with the ‘multiple indicator approach’ currently followed by the Reserve Bank of India (RBI). The results in this study suggest that the demand effects of interest rate are stronger than the exchange rate effects. There is also evidence of the mitigation of potential conflict between exchange rate and interest rate, one of main monetary policy dilemmas of the RBI in inflation targeting.     

Multi-dimensional deprivation in the awakening giants: A comparison of China and India on micro data

This paper compares multidimensional deprivation in India and China during the 1990s and beyond. The analysis is based on unit record data. The paper disaggregates the overall deprivation by categories, and compares the deprivation distribution between the two countries. The study reports that the high growth rates did not translate into an unambiguous improvement in living standards in either country. Deprivation is still unacceptably high in some categories. While rural deprivation is much higher in India than in China, they face similar levels of urban deprivation. China outperforms India on both child and maternal health.     

An augmented P-star model of Indian inflation

ABSTRACT

An augmented P-Star model is estimated and tested to identify the drivers of inflation in India. The model includes monetary and non-monetary factors, demand-pull and cost-push factors, and domestic as well as foreign factors. The results show that inflation in India is driven by a combination of monetary factors and non-monetary factors, some of which affect inflation on the supply side while others operate on the demand side. It turns out, however, that inflation in India is determined more by domestic rather than foreign factors.     

Re-examination of convergence hypothesis among Indian states in panel stationarity testing framework with structural breaks

This article examines the conditional income convergence hypothesis for 17 major states in India for the period of 1960–2012. Univariate stationarity tests without structural breaks provide evidence against the convergence hypothesis. However, when two or more structural breaks are applied in per capita income series, the incomes of around 11–13 states are found to stochastically converge to the national average. This finding supports the convergence hypothesis for the panel as a whole after accounting for two data features, cross-sectional dependence and structural breaks in incomes, using a unified panel stationarity testing framework.     

Out of control little-used clinical assets are draining healthcare budgets

To improve utilization and reduce the cost of maintaining mobile clinical equipment, healthcare organization leaders should do the following: Select an initial asset group to target. Conduct a physical inventory. Evaluate the organization's asset "ecosystem." Optimize workflow processes. Phase in new processes, and phase out inventory. Devote time to change management. Develop a replacement strategy.     

Integrating competency modeling in talent management: Framework for implications in a disruptive environment

This research explores the challenges encountered in integrating competency modeling (CM) in talent management (TM) and proposes a framework for this integration. Using CM practices and TM implementation perspectives, a framework was developed for integrating CM in TM. Furthermore, this research used a multiple cross-case study design approach involving organizations practicing CM. In-depth interviews with practicing HR managers helped identify the challenges and issues related to CM integration in TM. To address these challenges, a framework involving multiple alignments with TM was developed. The dimensions of this alignment comprise functionality, information system, capability, governance, and contextual integration. The integration aspects of CM in TM, which have been discussed in detail, will assist researchers and practitioners.