Monetary Policy, Forex Markets and Feedback Under Uncertainity in an Opening Economy

Published By: RBI on eSS | Published Date: September, 14 , 2009

Options for monetary policy arising from interactions between it and Indian foreign exchange (FX) markets. A brief survey covers recent rapid changes providing a snapshot of current microstructure, and of monetary policy institutions. The survey brings out the growing links between money and FX markets, the sophistication and variety of participants and institutions in markets that are now deep and liquid, and policy trilemmas in dealing with large cross border flows in a rapidly growing emerging market, where fundamentals are uncertain. [DRG Study Series No. 32].

Author(s): Ashima Goyal, R Ayyappan Nair, Amaresh Samantaraya | Posted on: Sep 14, 2009 | Views(1664) | Download (805)


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