This paper studies data revision properties of GDP growth and inflation for the Indianeconomy. The results show that revisions to GDP growth and inflation are significant, andcannot be characterized as either containing pure news or pure noise. We also find thatthere is a significant predictable component in the revisions to GDP growth and inflation.our findings suggest that if the Reserve Bank of India were to follow a Taylor rule for itsmonetary policy formulation, then the interest rate based on the preliminary data wouldbe much lower than the one based on the fully revised data.
展开▼
