Is uncertainty the same everywhere? Advanced versus emerging economies

The contribution of food subsidy policy to monetary policy in India

“…Ricardian total consumption decreases in response to an increase in the interest rate response. Kumar et al (2021) find that a domestic uncertainty shock in India is similar to the inflationary supply shock. The uncertainty shock can increase food inflation and the interest rate response.…”

Monetary Policy Uncertainty and Economic Fluctuations at the Zero Lower Bound

“…An area of fruitful future research would be to go beyond the domestic U.S. experience and explore the international spillovers from monetary policy uncertainty and how policy uncertainty propagates across countries. There is increasing evidence such as that reported in Kumar et al (2021) suggesting that uncertainty may behave differently in emerging than in advanced economies which, naturally, also can influence monetary policy responses differently.…”

Impossible Trinity in a Small Open Economy: A State–Space Model Simulation

“…In a recent study on India, Kumar, Mallick, and Sinha (2021) showed that while an uncertainty shock is a demand shock in the US, it is a supply shock in EMEs that has an inflationary effect. Kumar et al (2021) argued that inflation in India is primarily dominated by supply-side constraints.…”

“…In a recent study on India, Kumar, Mallick, and Sinha (2021) showed that while an uncertainty shock is a demand shock in the US, it is a supply shock in EMEs that has an inflationary effect. Kumar et al (2021) argued that inflation in India is primarily dominated by supply-side constraints. The effect of monetary policy, which focuses on the demand side to lower the interest rate, would be less effective in containing inflation.…”