All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

 
Takeshi Inoue and Shigeyuki Hamori
 
''What Explains Real and Nominal Exchange Rate Fluctuations?: Evidence from SVAR Analysis for India ''
( 2009, Vol. 29 No.4 )
 
 
This study empirically analyzes the sources of the exchange rate fluctuations in India by employing the structural VAR model. The VAR system consists of three variables, i.e., the nominal exchange rate, the real exchange rate, and the relative output of India and a foreign country. Consistent with most previous studies, the empirical evidence demonstrates that real shocks are the main drives of the fluctuations in real and nominal exchange rates, indicating that the central bank cannot maintain the real exchange rate at its desired level over time.
 
 
Keywords: Exchange Rate, India, RBI, SVAR
JEL: F4 - Macroeconomic Aspects of International Trade and Finance: General
O1 - Economic Development: General
 
Manuscript Received : Sep 30 2009 Manuscript Accepted : Nov 09 2009

  This abstract has been downloaded 285 times                The Full PDF of this paper has been downloaded 87747 times