What is the relationship between interest rates and the exchange rate? The empirical literature in this area has been inconclusive. We use an optimizing model of a small open economy to rationalize the mixed empirical findings. The model has three key margins. First, higher domestic interest...

What is the relationship between interest rates and the exchange rate? The empirical literature in this area has been inconclusive. We use an optimizing model of a small open economy to rationalize the mixed empirical findings. The model has three key margins. First, higher domestic interest...

How have the poorest sections of society in India responded to the rapid changes in the Indian economy over the past 30 years? We examine this issue by focusing on the fortunes of Scheduled Castes and Scheduled Tribes (SC/ST) - the historically disadvantaged and underprivileged castes in India....