Analysing the Impact of Foreign Exchange Rate on Macroeconomic Variables in India
Journal Title: International Journal of Applied Research in Management and Economics - Year 2023, Vol 6, Issue 1
Abstract
This paper analyses the impact of foreign exchange rates on the foreign exchange reserves and the real Gross Domestic Product in India. These variables are essential for Indiaâs external sector policy. Some basic definitions of the different kinds of exchange rates are covered in light of Indiaâs economic context. This is followed by a literature review on the dilemma of adopting a strong or a weak exchange rate policy and its implications on the economy. Presented after this is a model of the cyclical nature of currency fluctuations in an economy. Empirical evidence shows that currency depreciation causes an increase in foreign exchange reserves and economic growth. Data from the International Financial Statistics of the International Monetary Fund and World Development Indicators of the World Bank has been utilised using econometric tests and software to verify the hypothesis. Results are ascertained and concluding remarks are made thereafter. Certain limitations to the research have been described as well.
Authors and Affiliations
Varun Rao,
Keywords
Related Articles
- EP ID EP745357
- DOI -
- Views 1
- Downloads 0
Analyzing Voluntary CSR Communication: A Qualitative Study On “Fertial NEWS”
This paper aims to investigate Fertial’s CSR communication, to comprehend whether it is a voluntary adoption or it is due to external stakeholders’ influence. Unlike many empirical researches that have been carried out t...
Financial Capability Formation and the Variables that Effect It with Respect to Canadian Consumers
With the ascent of money, services provided in the financial systems of different economies have extended the hand of consumers on numerous commodities other than for current consumption but also for future consumption....
Customers’ Deposits and Loan Administration: Nigerian Banks’ Perception
This study evaluates the effect of customers’ deposits on loan administration in Nigerian banks from 2007 to 2016. Secondary data were obtained from annual reports accounts of ten (10) quoted Nigerian commercial Banks. T...
Environmental Regulation and High-quality Economic Development in the Yangtze River Delta Urban Agglomeration
China's economy has been under tremendous pressure due to the decoupling from the United States, leading to a prolonged economic downturn. In response, the Political Bureau of the CPC Central Committee has introduced the...
Study of Strategic Entrepreneurship on Organizational Performance With the Mediating Role of Human Resource Information Systems (study case: Social Security Organization of East Azerbaijan Province)
The purpose of this study was to investigate the effect of strategic entrepreneurship on the performance of the organization with the mediator role of human resources information systems. For this purpose, the statistica...