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Services sector in India contributes more than 60% of the overall gross domestic product (GDP) and more than 40% of total trade. This sector also absorbs a chunk of manpower, especially in export-oriented industries and reduces the employment burden on other non-services sectors. In this...
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This paper investigates the PPP and UIP conditions by taking into account possible nonlinearities as well as the role … follows. First, the nonlinear specification provides much stronger evidence for the PPP and UIP conditions, the estimated … exchange rate from the PPP- and UIP-implied equilibrium. …
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), and the Uncovered Interest Parity (UIP) model. The widely used log–log form in the PPP model with the relative PPI can … Parity (PPP) model using the relative Producer Price Index (PPI), the PPP model using the relative Consumer Price Index (CPI …
Persistent link: https://www.econbiz.de/10008538679
), and the Uncovered Interest Parity (UIP) model. The widely used log?log form in the PPP model with the relative PPI can be … Parity (PPP) model using the relative Producer Price Index (PPI), the PPP model using the relative Consumer Price Index (CPI …
Persistent link: https://www.econbiz.de/10005048899
This paper offers guidance on the operational aspects of official intervention in the foreign exchange market, particularly in developing countries with flexible exchange rate regimes. A brief survey of the literature and country experience is followed by an analysis of the objectives, timing,...
Persistent link: https://www.econbiz.de/10005826478
We assess monetary regime options for Latin American countries. The costs of a common currency are likely to outweigh its benefits, as those countries face diverse economic shocks, do not trade much with each other, and are affected by common international financial shocks only to the same...
Persistent link: https://www.econbiz.de/10005826660
This paper discusses key findings of the Fourth Review Under the Stand-By Arrangement for Georgia. The strategy remains appropriate, and program targets for 2010 are in line with those presented at the Third Review. Fiscal policy will transition from an expansionary stance in 2009 to a path of...
Persistent link: https://www.econbiz.de/10011245583
This paper discusses the request from Costa Rica for a Stand-By Arrangement (SBA). The program seeks to enable an orderly adjustment of the Costa Rican economy to an adverse external environment, while mitigating its adverse effects on growth and household incomes. To strengthen the external...
Persistent link: https://www.econbiz.de/10011245783