Managing capital flows is the key policy challenge for emerging economies like India in the aftermath of the crisis. In … contrast to other emerging markets who are levying capital controls, India's macro-monetary framework is distinguished by … significant restrictions that help manage inflows. Against this context, the paper characterizes India's capital account …

In the recent years several commentators hinted at an increase of the correlation between equity and commodity prices … various measures of correlation. Next, we assess to what extent correlations between oil and equity prices can be exploited … for asset allocation. We develop a time-varying Bayesian Dynamic Conditional Correlation model for volatilities and …

costs as variables strategically influenced by stock market integrations as an increase in the correlation of underlying …

equilibriumvolatility and correlation risk premia. In our economy, uncertainty is linked to both firm-specific and market-wide signals …: Greatersubjective uncertainty or higher disagreement on the market-wide signal imply a larger correlation of beliefs, a strongerco …-movement of stock returns, and a substantial correlation risk premium generated by the endogenous optimal risksharingamong …