Economic Growth and External Stabilisation (defined in terms of Current Account Balance as a percentage of GDP) is a top priority for policy-makers, while laying out the macroeconomic framework for Indian economy. Government of India had targeted for an average GDP growth rate of 9 percent and a...

The current account-interest rate relationship has been extensively investigated, but always assuming that it is linear. In this paper we examine the linearity versus nonlinearity issue with reference to this relationship in 11 OECD countries, and find overwhelming evidence in favour of...

The purpose of this paper is to examine the issue of high current account deficit (CAD) from various perspectives focusing its behaviour, financing pattern and sustainability for India. The study found that the widening of CAD is due to fall in household financial savings and corporate...

India's current account position has been worsening in recent years. Data on the components of the current account and the composition of the trade account highlight some concerns but also provide a reason to be optimistic about India's external sustainability. This paper studies sustainability...