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Linkages of Indian Interest Rates with US and Japanese Rates

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  • Vuyyuri, S.

Abstract

The 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.

Suggested Citation

  • Vuyyuri, S., 2004. "Linkages of Indian Interest Rates with US and Japanese Rates," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 4(2).
  • Handle: RePEc:eaa:aeinde:v:4:y:2004:i:1_10
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    References listed on IDEAS

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    Cited by:

    1. repec:dug:actaec:y:2017:i:2:p:139-156 is not listed on IDEAS
    2. Biru Paksha Paul, 2007. "Does Globalization Cause the Loss of Monetary-Policy Independence in Developing Economies? A Case Study with India," Papers of the Annual IUE-SUNY Cortland Conference in Economics,in: Proceedings of the Conference on Globalization and Its Discontents, pages 186-207 Izmir University of Economics.

    More about this item

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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