Anchoring of Inflation Expectations and Monetary Policy Transparency in India

Bstract This study explains a measure of the level of monetary policy transparency in India using text-mining mechanism and, overview the force of transparency on anchoring of inflation outlook. The transparency intensity appears to have increased substantially since India adopted a flexible inflation targeting framework. Further, we evaluate if enhanced transparency has any impact on the measure of anchoring of inflation expectations. Though the expectation anchoring has been distinct in more than a few conducts in the writing, we illustrate the conception in expressions of compassion of expectations to accessible information. In this progression, depending on the fundamental in revolve position, we believe the aspect of probability anchoring in three category, viz., weak-form, semi-strong-form and strong-form, and focused on the weak-form for empirical analysis. A questionnaire was sent to all the households and professionals in different state of nation. Their Overall Feedback was considered for study. A sample of 1000 feedback responses received from over three years for expectations to accessible information from household and professionals was analyzed using T-test, ANOVA and multivariable linear regression methods. During literature review, there are multiple articles that conclude a significant difference in feedback received from household and professionals in the hospitality industry. Their differences were evident in this sector. However, in the Anchoring of Inflation Expectations and Monetary Policy Transparency in India, we observed that there was no significant