What Explains India's Real Appreciation?:
We examine the evolution of nontradable and tradable prices in the Indian economy over 1980-2002 and find widening differentials: the real exchange rate has been appreciating. This might seem unsurprising, since India''s rapid per capita income growth suggests Balassa-Samuelson factors at...
Gespeichert in:
1. Verfasser: | |
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
2007
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Schriftenreihe: | IMF Working Papers
Working Paper No. 07/268 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | We examine the evolution of nontradable and tradable prices in the Indian economy over 1980-2002 and find widening differentials: the real exchange rate has been appreciating. This might seem unsurprising, since India''s rapid per capita income growth suggests Balassa-Samuelson factors at play. However, after 1990, the tradable-nontradable labor productivity gap, the driver of real appreciation according to Balassa-Samuelson, virtually disappeared. So what explains the real appreciation? Assessing the role of both demand and supply factors, we find that demand pressures arising from higher income growth accounted for much of the relative price increase during the post-reform period. Falling import prices also contributed significantly, along with an increase in government spending |
Beschreibung: | 1 Online-Ressource (50 p) |
ISBN: | 1451868316 9781451868319 |
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spelling | Kohli, Renu Verfasser aut What Explains India's Real Appreciation? Kohli, Renu Washington, D.C International Monetary Fund 2007 1 Online-Ressource (50 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 07/268 We examine the evolution of nontradable and tradable prices in the Indian economy over 1980-2002 and find widening differentials: the real exchange rate has been appreciating. This might seem unsurprising, since India''s rapid per capita income growth suggests Balassa-Samuelson factors at play. However, after 1990, the tradable-nontradable labor productivity gap, the driver of real appreciation according to Balassa-Samuelson, virtually disappeared. So what explains the real appreciation? Assessing the role of both demand and supply factors, we find that demand pressures arising from higher income growth accounted for much of the relative price increase during the post-reform period. Falling import prices also contributed significantly, along with an increase in government spending Online-Ausg Mohapatra, Sudip Sonstige oth http://elibrary.imf.org/view/IMF001/08832-9781451868319/08832-9781451868319/08832-9781451868319.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Kohli, Renu What Explains India's Real Appreciation? |
title | What Explains India's Real Appreciation? |
title_auth | What Explains India's Real Appreciation? |
title_exact_search | What Explains India's Real Appreciation? |
title_exact_search_txtP | What Explains India's Real Appreciation? |
title_full | What Explains India's Real Appreciation? Kohli, Renu |
title_fullStr | What Explains India's Real Appreciation? Kohli, Renu |
title_full_unstemmed | What Explains India's Real Appreciation? Kohli, Renu |
title_short | What Explains India's Real Appreciation? |
title_sort | what explains india s real appreciation |
url | http://elibrary.imf.org/view/IMF001/08832-9781451868319/08832-9781451868319/08832-9781451868319.xml |
work_keys_str_mv | AT kohlirenu whatexplainsindiasrealappreciation AT mohapatrasudip whatexplainsindiasrealappreciation |