The study examines the theoretical considerations and empirical results of the switch to market borrowing, i.e. bond financing of the fiscal deficit, with correspondingly low monetisation, as part of India’s structural reforms initiated in 1991. It basically concludes that despite the sharp...

Employing an inter-temporal model on a constructed private consumption series, the paper finds that the current account balance in India during 1950-51 to 2005-06 is intertemporally solvent. This is primarily a reflection of the developments that have taken place during the post-reform period,...

This study has used more recent data for 2006-07 and 2007-08 which are now available.Employing more recent data, we find that the earlier robust results that we had foundin the context of India are reaffirmed. Employing an inter-temporal model on a constructedprivate consumption series, the...

Like many emerging market economies (EMEs), India also experienced a significant surge in capital inflows since the second the half of 1990s. Capital inflows as percentage of GDP increased from 7.2 per cent during 1990-91 to 25.8 per cent in 2008-09 reflecting the rising contribution of...

Exchange rate fluctuations affect the value of international investment portfolios, competitiveness of exports and imports, value of international reserves, currency value of debt payments, and the cost to tourists in terms of the value of their currency. Movements in exchange rates, therefore,...

The paper employing ARDL cointegration approach examined the Feldstein-Horioka (FH)(1980) postulate on international capital mobility for India during 1950-51 to 1990-1991 and during 1950-51 to 2006-07. It finds a robust long-run cointegrating relationship between saving and investment rates in...