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- Title
Exchange rate regime and monetary independence - The Indian experience.
- Authors
Chakravarty, Suvojit Lahiri
- Abstract
This paper examines the de-facto exchange rate regime for the Indian economy using a time series of monthly data from 1999 to 2008 using the synthesis technique (Frenkel & Wei, 2008). The technique covers both the dimensions of estimating the exchange rate regime viz., inferring weights of the currencies in the basket peg and estimating flexibility around an anchor currency. This methodology is suitable as India, along with other emerging economies has followed variants of band basket crawl in the last decade. The second part of the study focuses on the question of the impossible trinity and degree of monetary independence for the Indian economy for the same period, in the light of increasing capital flows.
- Subjects
INDIA; FOREIGN exchange rates; INDIAN economy, 1991-; HARD currencies; CAPITAL movements
- Publication
Decision (0304-0941), 2011, Vol 38, Issue 2, p34
- ISSN
0304-0941
- Publication type
Article