Liberalization of Capital Inflows and the Real Exchange Rate in India: A VAR Analysis
Published By: CDS on eSS | Published Date: September, 14 , 2003The East Asian crisis of 1997-98 and the Mexican crisis of 1994
generated much concern among policy analysts regarding the role of
macroeconomic policies in the management of capital inflows. A series
of economic reform measures including liberalization of foreign capital
inflows were initiated in India since the early nineties. Using the vector
autoregression (VAR) method, this paper specifically examines if the
external shock generated by capital inflows led to appreciation in the
real exchange rate as observed in the East Asian and Latin American
countries in the 1990’s. [Working Paper No. 351]
Author(s): Indrani Chakraborty | Posted on: Oct 14, 2010 | Views(1036) | Download (673)