This paper examines the absorption of government spending shocks in the presence of formal and informal production. Calibrating a two-sector open economy model that is consistent with data from India for the period 1990-2017, we show that increases in both government consumption and investment...

This study focuses on the present situation of India’s current account and the impact of macroeconomic variables on it for a period of ten years from 2009-10 to 2018-19. For this study, this paper has considered the Current Account Deficit (CAD) as a dependent variable and macroeconomic...

This study focuses on the present situation of India’s current account and the impact ofmacroeconomic variables on it for a period of ten years from 2009-10 to 2018-19. For this study,this paper has considered the Current Account Deficit (CAD) as a dependent variable andmacroeconomic variables...

In 2001, Goldman Sachs coined the term BRICs (Wilson, Kelston, & Ahmed, 2010) to describe the four large developing countries of Brazil, Russia, India, and China that Goldman Sachs predict will overtake the G6 (US, Japan, UK, Germany, France, and Italy) in terms of GDP (in US$) by 2050 (Wilson &...

The study investigates the dynamic effect of macroeconomic variables on BSE returns. In recent phenomena, stock market is a leading indicator of an economy growth and economic fundamentals are determinants of the stock market movements. The study results found that selected macroeconomic...

In this paper, I analyze India's approach to capital account liberalization through the lens of the new literature on financial globalization. India's authorities have taken a cautious and calibrated path to capital account opening, which has served the economy well in terms of reducing its...

In this paper, I analyze India's approach to capital account liberalization through the lens of the new literature on financial globalization. India's authorities have taken a cautious and calibrated path to capital account opening, which has served the economy well in terms of reducing its...

A key challenge for macroeconomic policy in open economies is how to simultaneously manage exchange rates, interest rates and capital account openness - the trilemma. This paper calculates a trilemma index for India and investigates its evolution over time. We find that financial integration has...

The past two decades have witnessed a worldwide move by emerging markets to adopt explicit or implicit inflation targeting regimes. A notable and often discussed exception to this trend, of course, is China which follows pegged exchange rate regime supported by capital controls. Another major...

A key challenge facing most emerging market economies today is how to simultaneously maintain monetary independence, exchange rate stability and financial integration subject to the constraints imposed by the Trilemma, in an era of widespread globalization. In this paper we overview and contrast...