Real Exchange Rate Stationarity in Managed Floats: Evidence from India

Renu Kohli ()

International Finance from EconWPA

Abstract: This paper tests the PPP hypothesis using improved unit root tests. Tests for mean-reversion in real exchange rates for India during the recent (managed) float period yield evidence of mean-reversion in the real exchange rate series constructed with the consumer price index as deflator as well as for a series constructed using the ratio of wholesale and consumer price indices to proxy for the shares of tradable and non-tradable goods.

Keywords: real exchange rates; PPP; floating exchange rates; exchange rate management (search for similar items in EconPapers)
JEL-codes: F3 F4 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cwa and nep-ifn
Date: 2004-05-08
Note: Type of Document - pdf; pages: 8
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http://129.3.20.41/eps/if/papers/0405/0405011.pdf (application/pdf)

Related works:
Working Paper: Real Exhange Rate Stationarity in Managed Floats: Evidence From India (2004)
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpif:0405011

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