Is the Rupee over-valued?

Arbeitspapier

The paper's objective is to examine whether the Indian Rupee was fairly valued as of end March 2015. First, the movements of the trade weighted real effective exchange rate (REER) of the Rupee are tracked over the last ten years. Next, the underpinnings of the Harrod-Balassa-Samuelson effect, which suggests taking changes in productivity levels into account in arriving at reliable estimates of exchange rates, and associated studies, are assessed. The paper also discusses varying approaches to Behavioural Equilibrium Exchange Rate (BEER) models and uses one to analyse whether the Rupee is fairly valued. The conclusion of the paper that the Rupee is substantially over-valued is based on a comparison of results obtained using differing methodologies.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 304

Classification and Topics

• Classification: Wirtschaft ; Macroeconomics and Monetary Economics: General ; Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) ; Foreign Exchange ; Current Account Adjustment; Short-term Capital Movements ; Open Economy Macroeconomics ; Econometric Modeling: General
• Subject: Real effective exchange rate ; capital inflows ; inflation ; export growth ; Harrod-Balassa-Samuelson ; Behavioural Equilibrium Exchange Rate

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bhagwati, Jaimini ; Barua, Abheek ; Khan, M. Shuheb
• Event: Veröffentlichung
• (who): Indian Council for Research on International Economic Relations (ICRIER)
• (where): New Delhi
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/176322
• Last update: 10.03.2025, 11:42 AM CET