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Exchange Rate Policy and Modelling in India

Exchange Rate Policy and Modelling in India

Author: Pami Dua; Rajiv Ranjan
Publisher: Oxford University Press
ISBN: 9780198077206
Published In: April 2012
Format: Hardback , 272 pages
Jurisdiction: India ? Disclaimer:
Countri(es) stated herein are used as reference only

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Description
Contents
Author

Details

Comprehensive analysis of exchange rate
Provides forecasting model
Analyses the global financial crisis
Includes data definitions and sources
Annexure on policy measures

Exchange rate fluctuations affect the value of international investment portfolios, competitiveness of exports and imports, value of international reserves, currency value of debt payments, and the cost to tourists in terms of the value of their currency. Movements in exchange rates, therefore, have significant implications for the economy's business cycle, trade, and capital flows. This book provides a comprehensive analysis of the foreign exchange market in India in terms of participants, instruments and the trading platform, as also turnover and forward premia.

The book covers four broad areas: (i) various facets of economic policy with respect to the exchange rate; (ii) the recent global financial crisis and the role of exchange rates therein; (iii) the pattern of capital flows and capital account liberalization; and (iv) modelling and forecasting the exchange rate. The authors contextualize the evolution of the Indian foreign exchange market from a highly regulated market to a deep, liquid, and efficient market in the 1990s, and focus on how large capital flows have impacted the exchange rate policy. More important, they develop a model for the rupee-dollar exchange rate taking into account variables from monetary and micro structure models as well as other variables such as central bank intervention.

Readership: Undergraduate and postgraduate students and scholars of international economics, particularly international trade and finance, as well as bankers, business analysts, and policymakers.

1: Introduction
2: Exchange Rate Regimes
3: Exchange Rate and Exchange Rate Policy
4: Foreign Exchange Market Structure and Turnover
5: Manifestations of the Global Financial Crisis
6: Approach to Capital Account Liberalization
7: Capital Flows and Central Bank Intervention in the Foreign Exchange Market
8: Modelling and Forecasting the Exchange Rate
9: Concluding Observations
Annexure
Data Definition and Sources
References
Index

Pami Dua, University of Delhi, and Rajiv Ranjan, Reserve Bank of India, Mumbai

Pami Dua is Professor and Head, Department of Economics, Delhi School of Economics, University of Delhi. Rajiv Ranjan is Director, Department of Economic Analysis and Policy, Reserve Bank of India, Mumbai.