Tuesday, June 11, 2013

Fluctuations of the rupee

I have a column in the Economic Times today titled Do not mourn rupee fluctuations.

The methodology for identifying dates of structural change in the exchange rate regime is from Zeileis, Shah, Patnaik, 2010.

You may find The rupee: Frequently asked questions, 1 December 2011, to be of interest.

1 comment:

1. The conceptual framework of this article is excellent, and it makes a point that should be made repeatedly, that attempting to control the rupee has serious negative consequences for the Indian economy, and the almost no proven benefits.

The emphasis on allowing individual firms and indeed even individuals, to hedge their risk as they see fit is important. The continued assumption that there is any value in the mountains of regulation that effectively allow well connected firms and inviduals preferential treatment (it is clear that is not achieving any other goal) needs to end.

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