Exchange Rate Policy and Modelling in India

Description

Growing international trade and the resultant financial integration of the world economy have led to the study of and debate over an optimal exchange rate policy. Presenting a comprehensive overview of various regimes and their evolution, this book traces the reforms in India’s foreign exchange policy over the last two decades. The book undertakes a nuanced analysis of: • the key facets of India’s exchange rate policy and the structure of the foreign exchange market; • the global recession of 2008–9 and the crisis-related movements and fluctuations in exchange rate; • the pattern of capital flows with an emphasis on cautious capital account liberalization and measures regulating large capital inflows; and • the modelling and forecasting of the exchange rate in the framework of developing economies within a managed- float regime.