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BRICS: Interconnection of Exchange Rate, Balance of Payments and Foreign Exchange Reserve - the Example of India
[BRICS: Vzájemné souvislosti měnového kurzu, platební bilance a devizových rezerv - příklad Indie]

Author

Listed:
  • Jaroslava Durčáková
  • Ondřej Šíma

Abstract

The article deals with the exchange rate policy of India in the period 1999-2013. The first part informs about specificity of Indian economy. These features (apart from the Great recession) have brought Indian economy to sluggish growth after 2010. Next part is concentrated on Indian exchange rate policy and forex exchange market. The last part scrutinizes Indian balance of payments. It pays attention to widening current account deficit till 2012. Moreover, the current account deficit has been financed primarily by debt for approximately last five years.

Suggested Citation

  • Jaroslava Durčáková & Ondřej Šíma, 2015. "BRICS: Interconnection of Exchange Rate, Balance of Payments and Foreign Exchange Reserve - the Example of India [BRICS: Vzájemné souvislosti měnového kurzu, platební bilance a devizových rezerv - ," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2015(1), pages 6-35.
    • Handle: RePEc:prg:jnlcfu:v:2015:y:2015:i:1:id:434:p:6-35
    DOI: 10.18267/j.cfuc.434
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    References listed on IDEAS

    as
    1. Anand, Rahul & Prasad, Eswar, 2010. "Optimal Price Indices for Targeting Inflation under Incomplete Markets," IZA Discussion Papers 5137, Institute of Labor Economics (IZA).
    2. Mrs. Poonam Gupta & Mr. James P. F. Gordon, 2004. "Nonresident Deposits in India: In Search of Return?," IMF Working Papers 2004/048, International Monetary Fund.
    3. Rahul Anand & Ding Ding & Mr. Volodymyr Tulin, 2014. "Food Inflation in India: The Role for Monetary Policy," IMF Working Papers 2014/178, International Monetary Fund.
    4. International Monetary Fund, 2014. "India: Selected Issues," IMF Staff Country Reports 2014/058, International Monetary Fund.
    5. Bhattacharya, Rudrani & Patnaik,Ila, 2014. "Monetary policy analysis in an inflation targeting framework in emerging economies: The case of India," Working Papers 14/131, National Institute of Public Finance and Policy.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    India; Exchange rate policy; Balance of payments; Indie; Kurzová politika; Platební bilance;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General

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