 Capital Flows and Exchange Rates: The Indian ExperiencePami Dua and
Partha Sen
Chapter Chapter 8 in Perspectives on Economic Development and Policy in India, 2017, pp 193-216 from Springer Abstract: Abstract This paper examines the relationship between real exchange rate and the level as well as volatility of capital flows for the Indian economy for the period 1993Q2 to 2010Q4. Other variables include fiscal policy, monetary policy and external balance indicators. Estimation results indicate that the variables are co-integrated and each Granger-causes the real exchange rate. The generalized variance decompositions show that determinants of the real exchange rate, in descending order of importance include net capital inflows and their volatility (jointly), government expenditure, money supply and the current account surplus. An analysis on similar lines is also performed for the foreign exchange reserves held by the Reserve Bank of India. Keywords: Real exchange rate; Capital flows; Foreign exchange reserves; Co-integration (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:isbchp:978-981-10-3150-2_8 Ordering information: This item can be ordered from DOI: 10.1007/978-981-10-3150-2_8 Access Statistics for this chapter More chapters in India Studies in Business and Economics from Springer |
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