Tourism sector recession and endogenous policy response of the central bank, of which price puzzle May Be one consequence

• Sushobhan Mahata ^[1] ; Rohan Kanti Khan ^[3] ; Ranjanendra Narayan Nag ^[2]
  1. [1] University of Calcutta

     University of Calcutta

     India

     
  2. [2] St. Xavier’s College (Autonomous), India
  3. [3] Maulana Abul Kalam Azad University of Technology, India

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• Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 32, Nº. 3 (May), 2026, págs. 689-704
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • In the midst of new waves of economic crises, the vulnerability of the tourism sector to external shocks has pushed tourism-dominated economies into limbo. In light of this context, this paper pursues a dual objective. First, we examine how an adverse global income shock impacts inflation, exchange rates, and wages in a tourism-sector led developing economy. Secondly, we investigate how the Central Bank reacts to the crisis originating from the tourism sector by actively selecting its policy instruments, potentially leading to the manifestation of a price puzzle. We obtained that the common colloquy about the causal relationship between inflation and credit control policy may be reversed.