Money and FinanceConference proceedings of Money and Financehttp://hdl.handle.net/2275/91980-04-03T11:52:26Z1980-04-03T11:52:26ZWhat moves Indian stock markets: A Study on the linkage with real economy in post-reform eraRay, PrantikVani, Veenahttp://hdl.handle.net/2275/2192012-06-07T12:05:05Z2012-06-07T00:00:00ZWhat moves Indian stock markets: A Study on the linkage with real economy in post-reform era
Ray, Prantik; Vani, Veena
This paper is a fresh attempt to unravel the relationship between the real economic variables and the capital market in Indian context. The paper considers the monthly data of several economic variables like the national output, fiscal deficit, interest rate, inflation, exchange rate, money supply, foreign institutional investment in Indian markets between 1994 and 2003, and tries to reveal the relative influence of these variables on the sensitive index of the Bombay stock exchange. Compared to the earlier similar attempts, this paper applies the modern non-linear technique like VAR and Artificial Neural Network and compares the results. The finding shows that certain variables like the interest rate, output, money supply, inflation rate and the exchange rate has considerable influence in the stock market movement in the considered period, while the other variables have very negligible impact on the stock market. Keywords: Indian Stock Market, Economic Variables, Artificial Neural Network, VAR
2012-06-07T00:00:00ZThe Theory of current accounts and the developing world: An Exploratory empirical analysisChandra Kiran, B.Khttp://hdl.handle.net/2275/2182012-06-07T12:03:01Z2012-06-07T00:00:00ZThe Theory of current accounts and the developing world: An Exploratory empirical analysis
Chandra Kiran, B.K
The question of the determinants of the current account has received enormous attention and has spawned an entire generation of papers for the industrialised countries [3]. However, the explanatory power of the theories put forward in explanation of the CA behaviour have been, at best, weak. There has, been very little work on the CA behaviour of developing countries, insofar as empirical evaluation of the competing theories are concerned. In this pa- per, an attempt has been made to explain the CA behaviour of the developing countries in a framework developed and evaluated for the advanced industrialised countries. Preliminary results indicate that these models do not possess any significant degree of explanatory power and are not suited, in their current form, to analyse the CA behaviour of the developing world. The surmise is that government consumption as well as differing institutions, tastes and other factors affect these countries differently and any model that does not,explicitly, account for these disparities is unlikely to have significant explanatory power.
2012-06-07T00:00:00ZThe Sub-optimality of the opportunistic approach to disinflationMinford, PatrickSrinivasan, Naveenhttp://hdl.handle.net/2275/2172012-06-07T12:00:29Z2012-06-07T00:00:00ZThe Sub-optimality of the opportunistic approach to disinflation
Minford, Patrick; Srinivasan, Naveen
One approach to achieving price stability is to undertake a deliberate path to an ultimate goal of low inflation-deliberate disinflation. In contrast an opportunistic strategy for disinflation has gained credence in recent years. We compare the ability of two approaches to achieve macroeconomic stability and conclude that the opportunistic approach is sub-optimal, when a commitment mechanism is in place. We show that non-linear effect of the shock on the position of Philips curve trade-off along with adaptive expectations yields an opportunistic inflation response. However, such nonlinear shift effects have no theoretical underpinning implying that the theory for opportunism is weak.
2012-06-07T00:00:00ZSources of Indian financePaul, JustinRamanathan, Ahttp://hdl.handle.net/2275/2162012-06-07T11:58:35Z2012-06-07T00:00:00ZSources of Indian finance
Paul, Justin; Ramanathan, A
Indian industry is passing through a crucial phase of transition and restructuring. The
country has been embarked upon the program of economic reforms since 1991. This will have
significant influence on the growth of industry and subsequent development of the economy. This
study examines the major determinants of industrial finance from the point of view of investment
and credit and attempts to assess the impact of these reforms on industrial production in India.
2012-06-07T00:00:00Z