The Indian economy reached the trillion US dollar GDP milestone in 2007 and joined other countries of the trillion dollar club, namely, the US, UK, Japan, Germany, China, France, Italy, Spain, Canada, Brazil and Russia. In fact, over the period 1960 to the late 1980s, India’s GDP in US...

This paper explores the behaviour of the forward premia for US$ vis-à-vis INR during the five-year period of September 2000 to September 2005. Indian forex market experienced a peculiar phenomenon in the years 2003 and 2004 where the forward premia on US$ spot (cash) vis-à-vis Indian rupee...

The nature of the financial turbulence that happened recently in US and Europe, why it happened, where it happened, and the implications for central banks. Some of the forces that led up to and characterized the recent spate of events, the specific responses of central banks and some challenges...

When analyzing the appropriate response for monetary policy during a currency crisis it is important to keep in mind two distinct channels: (a) the impact of raising interest rates on exchange rates; and (b) the direct impact of exchange rate changes on output. The first pertains to the monetary...

The paper estimates the elasticity of Imports with respect to relative prices and income for Pakistan from 1971 to 2009. What distinguishes this paper from the earlier studies is the use of robust estimation technique of Autoregressive Distributed Lag (ARDL) model utilizing the bounds test...

Policy makers are particularly concerned about the extent and speed of exchange rate pass-through into domestic prices. However, in recent times there seems to be a growing degree of disconnect between exchange rate changes and domestic consumer prices in general, or, for that matter, even into...

A stated objective of Myanmar is to become a modern developed nation that will stand shoulder to shoulder – proud, dignified and tall – with the countries of the world. How far has Myanmar come in achieving this goal, viewed from an economic perspective?2 Where does it stand at...

A large number of studies in Nepal have been conducted to identify the factors responsible for inflation based on the different theories of inflation. Although these studies provide insight into the determinants of inflation in the country, there remain some unanswered questions: • Can...