Project

Climate-responsive monetary policy: Integrating climate shocks into inflation modelling and forecasting

Research Team: Sunny Singh, Shovon Sengupta

Funded By: India Sustainable Growth Hub (ISGH)

Description: This study integrates climate shocks such as heatwaves, rainfall deficits, and floods into India’s inflation forecasting models to strengthen monetary policy responses. Using advanced econometric and machine-learning methods, it quantifies how climate events affect inflation and develops tools to help the Reserve Bank of India manage climate-driven economic risks.

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