Macroeconomic Determinants of Exchange Rate Pass-Through in India

Author
Ramkishen S. Rajan, Amit Ghosh
Content Type
Working Paper
Institution
Department of Economics and Business, Colorado College
Abstract
This paper examines the evolution of exchange rate pass-through (ERPT) into India's consumer price index (CPI) at the aggregate level over the period 1980Q1-2006Q4. It also investigates whether the extent of exchange rate pass-through is impacted by common macro fundamentals such as inflation and exchange rate volatility. Finally, the paper also tests for possible asymmetries of ERPT during periods of depreciation versus appreciation.
Topic
Economics, Markets, Monetary Policy
Political Geography
South Asia, India