Exchange rate regimes in India: Central Bank interventions and purchasing power parity in the context of ASEAN currencies

Simple item page
dc.contributor.authorSiddharth, Angad
dc.contributor.authorAlexiou, Constantinos
dc.contributor.authorVogiazas, Sofoklis
dc.date.accessioned2024-04-26T13:46:46Z
dc.date.available2024-04-26T13:46:46Z
dc.date.issued2024-04-19
dc.description.abstractIn this study spanning four decades, we explored the relationship between the Reserve Bank of India’s (RBI) interventions and the validity of Purchasing Power Parity (PPP) across two distinct exchange rate regimes: the fixed exchange rate regime (1975–1993) and the managed floating regime (1994–2015). Applying an error correction model (VECM), our analysis reveals that under the fixed exchange rate regime, the environment is conducive to PPP due to frequent interventions by the RBI. However, in the managed floating regime, selective interventions weaken the applicability of PPP. These findings align with prior research but also hint at the limitations of linear models in capturing the intricate dynamics of PPP when central banks are involved. Nonlinear models may hold the key to unraveling the relationship more effectively.en_UK
dc.identifier.citationSiddharth A, Alexiou C, Vogiazas S. (2024) Exchange rate regimes in India: Central Bank interventions and purchasing power parity in the context of ASEAN currencies. Economies, Volume 12, Issue 4, April 2024, Article number 96en_UK
dc.identifier.eissn2227-7099
dc.identifier.urihttps://doi.org/10.3390/economies12040096
dc.identifier.urihttps://dspace.lib.cranfield.ac.uk/handle/1826/21280
dc.language.isoen_UKen_UK
dc.publisherMDPIen_UK
dc.rightsAttribution 4.0 International*
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/*
dc.subjectpurchasing power parityen_UK
dc.subjectIndiaen_UK
dc.subjectcentral bank interventionsen_UK
dc.subjectforeign exchange rateen_UK
dc.subjectASEANen_UK
dc.subjectVECMen_UK
dc.titleExchange rate regimes in India: Central Bank interventions and purchasing power parity in the context of ASEAN currenciesen_UK
dc.typeArticleen_UK
dcterms.dateAccepted2024-04-16

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Exchange_rate_regimes_in_India-2024.pdf
Size:
2.03 MB
Format:
Adobe Portable Document Format
Description:
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.63 KB
Format:
Item-specific license agreed upon to submission
Description:
Download

Collections

Staff publications (SoM)