PAMI DUA () (Department of Economics, Delhi School of Economics, University of Delhi, Delhi 110007, India) ARUNIMA SINHA (Department of Economics, Columbia University, New York, NY, USA)
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This paper investigates the effects of the East Asian crisis on the Indian economy and exchange rate movements. Despite the contagion effects that profoundly affected the other crisis-hit countries, the Indian economy and the rupee were found less affected. Reforms after the 1990â1991 crisis, control of capital flows, weak economic linkages with crisis-affected countries and stabilization policies that include intervention in the foreign exchange market and tightening of monetary policy are reasons for the insulation of the Indian economy from the crisis.
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