Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/176322
Authors: 
Bhagwati, Jaimini
Barua, Abheek
Khan, M. Shuheb
Year of Publication: 
2015
Series/Report no.: 
Working Paper 304
Abstract: 
The paper's objective is to examine whether the Indian Rupee was fairly valued as of end March 2015. First, the movements of the trade weighted real effective exchange rate (REER) of the Rupee are tracked over the last ten years. Next, the underpinnings of the Harrod-Balassa-Samuelson effect, which suggests taking changes in productivity levels into account in arriving at reliable estimates of exchange rates, and associated studies, are assessed. The paper also discusses varying approaches to Behavioural Equilibrium Exchange Rate (BEER) models and uses one to analyse whether the Rupee is fairly valued. The conclusion of the paper that the Rupee is substantially over-valued is based on a comparison of results obtained using differing methodologies.
Subjects: 
Real effective exchange rate
capital inflows
inflation
export growth
Harrod-Balassa-Samuelson
Behavioural Equilibrium Exchange Rate
JEL: 
E00
E30
F31
F32
F41
C50
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.