This Selected Issues paper examines how surges in global financial market volatility spill over to emerging market economies (EMs) including India. The results suggest that a surge in global financial market volatility is transmitted very strongly to key macroeconomic and financial variables of...

EXECUTIVE SUMMARY The background papers for the 2014 Article IV explore key issues affecting the Indian economy, and implications for fiscal, monetary, structural, and financial sector policies. The first chapter uncovers the factors behind the unprecedented widening of India’s current account...