capital stock per capita, the medium development the years of the education and the real exchange rate have the positive and …

, or, even if not, the real exchange rate might overshoot. Fiscal policy may help to stabilise inflation and also to target … the real exchange rate. The paper argues that an improved fiscal policy process might result in improved macroeconomic … response may be unstable, or, even if not, the real exchange rate might overshoot. In this context, the rules of the SGP may …

. If nominal shocks account for most of the movement in the real exchange rate then the authorities can use monetary policy … the real exchange rate the Purchasing Power Parity (PPP) hypothesis is invalid and monetary policy ineffective as a tool … of exchange rate management. The paper finds that the real exchange rate of the Rupee against the US dollar is non …