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| Artatrana Ratha |
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| ''Does Devaluation work for India?'' |
| ( 2010, Vol. 30 No.1 ) |
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| 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. |
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| Keywords: Devaluation; Expansionary effects; India; Rupee; bounds-testing; cointegration |
JEL: F3 - International Finance: General
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| Manuscript Received : Jun 29 2009 | | Manuscript Accepted : Jan 17 2010 |
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