Akram, Vaseem and Rath, Badri Narayan and Jahera, JohnS
(2017)
Exchange rate misalignment and economic growth in India.
Journal of Financial Economic Policy.
00-00.
ISSN 1757-6385
(In Press)
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Abstract
Our results find an overvaluation of exchange rate till 2000 and thereafter, undervaluation of exchange rate prevails in India. Further, the result indicates that an increase in exchange rate misalignment leads to a decrease in economic growth and vice-versa. In other way, a positive misalignment (overvaluation) hurts the economic growth and negative misalignment (undervaluation) promote the economic growth.
The study contributes to the existing literature by estimating the exchange rate misalignment for India and its impact on economic growth.
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