Have Economic Reforms Affected Exchange Rate Pass-Through to Prices in India?

Khundrakpam, Jeevan Kumar (2008): Have Economic Reforms Affected Exchange Rate Pass-Through to Prices in India? Published in: Economic and Political Weekly , Vol. XLIII, No. 16 (April 2008): pp. 71-79.

Abstract

This paper examines the behaviour of exchange rate pass-through to domestic prices in India after the reforms initiated in the early 1990s. Unlike observed in several countries, it finds a rise in exchange rate pass-through to domestic prices until recent years. Besides economic factors typically associated with economic liberalisation, the persistence of higher inflation is an important factor for the rise in pass-through.

• Item Type: MPRA Paper
• Language: English
• Keywords: pass-through, exchange rate, prices
• Subjects: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level ; Inflation ; Deflation; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics

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