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Artatrana Ratha
''Does Devaluation work for India?''
( 2010, Vol. 30 No.1 )
Whether currency devaluation helps economic growth is an empirically open question. Despite its policy-implications, the issue has received relatively scant econometric attention. Since the results are specific to the sample, model, and techniques employed, country-specific studies have received renewed interest. Coexistence of successive currency devaluations and a booming economy makes India a unique case-study. Using latest data and the bounds-testing approach to cointegration and error-correction modeling, this paper finds that rupee's devaluation is expansionary in India.
Keywords: Devaluation; Expansionary effects; India; Rupee; bounds-testing; cointegration
JEL: F3 - International Finance: General
Manuscript Received : Jun 29 2009 Manuscript Accepted : Jan 17 2010

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