Notwithstanding India’s impressive economic performance in the post-reform period, it is widely believed that there has not been adequate trickle down of benefits to rural India. Acknowledging the limitations of the conventional market forces for economic uplifting of the disadvantaged...

Options for monetary policy arising from interactions between it and Indian foreign exchange (FX) markets. A brief survey covers recent rapid changes providing a snapshot of current microstructure, and of monetary policy institutions. The survey brings out the growing links between money and FX...

Empirical evidences on the transmission mechanism by which monetary policy affects the economy, particularly general prices and real activity, are essential, both for effective policy making and understanding the alternate macroeconomic theories. A consensus has largely been established on the...

This paper examines whether the spread between long- and short-terminterest rates contains information about future economic activity in India. Using the yields on securities with maturities ranging from three months to ten years, we construct five different yield spreads at shorter end, longer...

A plethora of research activity on the relationship between a country’s export and economic growth has produced ambiguous and mixed results. We reinvestigate this relationship using the methodology of wavelets based correlation and cross correlation. Our results show that the relationship...

Sovereign rating—an assessment of the relative likelihood of a country defaulting on its financial obligations—is important not only because better ratings facilitate external borrowing at favourable rates of interest, but also for the impetus it gives to the development of...