Linkages of Indian Interest Rates with US and Japanese Rates
AbstractThe reform process in India has gradually integrated the Indian financial markets with the rest of the world, and as a corollary, interest rates in India have been responding to movements in other financial markets. This article employs monthly short-term interest rate data over the 1992-2002 period to investigate the influence that the Japanese and the American interests exert on interest rates in India. We use cointegration and causality tests and find the existence of a steady-state relationship of short-term interest rates in India with both US and Japan. We also briefly discuss some policy fallouts.
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Bibliographic InfoArticle provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.
Volume (Year): 4 (2004)
Issue (Month): 2 ()
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Find related papers by JEL classification:
- C5 - Mathematical and Quantitative Methods - - Econometric Modeling
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
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