Monetary policy more effective in a larger formal labour markets: Study
Research by the RBI reveals that monetary policy transmission is more effective with increased formality in the labour market. A higher share of formal sector employment enhances the impact of policy measures on inflation and output, suggesting better outcomes under inflation targeting.
Research by the RBI reveals that monetary policy transmission is more effective with increased formality in the labour market. A higher share of formal sector employment enhances the impact of policy measures on inflation and output, suggesting better outcomes under inflation targeting.
