Figure 5 shows the evolution of nominal yields of IGBs. Figure 6 shows the evolution of the short-term interest rate along with the RBI's policy rates (repo rates and reverse repo rates). The rate of inflation is defined as the year-on-year percentage change in the total consumer price index for all items. Growth in industrial production is the year-on-year percentage change in the index of industrial activity in India. The ratio of government debt to nominal GDP is used here as the government fiscal variable. The ratio of private sector credit (from all sectors) to nominal GDP is used to measure credit growth. The Institute for International Monetary Affairs’ index of the volatility in global bond markets is a proxy for global investors’ risk appetite. An increase (decrease) in volatility in global bond markets means that investors’ perception of and appetite for risk has risen (declined). The nominal effective exchange rate, calculated by the Bank for International Settlements, is the exchange rate used here. The data of all the variables are collected from Macrobond's (various years) data services. Table 1 provides a summary of the data and detailed descriptions of the variables. The monthly time series dataset runs from March 1999 to October 2015, while the quarterly dataset includes time series variables from the third quarter of 2003 to the second quarter of 2015.