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Does Devaluation work for India?

  • Artatrana Ratha

    ()

    (St. Cloud State University)

Whether currency devaluation helps economic growth is an empirically open question. Despite its policy-implications, the issue has received relatively scant econometric attention. Since the results are specific to the sample, model, and techniques employed, country-specific studies have received renewed interest. Coexistence of successive currency devaluations and a booming economy makes India a unique case-study. Using latest data and the bounds-testing approach to cointegration and error-correction modeling, this paper finds that rupee's devaluation is expansionary in India.

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File URL: http://www.accessecon.com/Pubs/EB/2010/Volume30/EB-10-V30-I1-P21.pdf
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Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 30 (2010)
Issue (Month): 1 ()
Pages: 247-264

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Handle: RePEc:ebl:ecbull:eb-09-00392
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  17. Rose, Andrew K. & Yellen, Janet L., 1989. "Is there a J-curve?," Journal of Monetary Economics, Elsevier, vol. 24(1), pages 53-68, July.
  18. Mohsen Bahmani-Oskooee & Souphala Chomsisengphet & Magda Kandil, 2002. "Are devaluations contractionary in Asia?," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 25(1), pages 69-82, January.
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