Effects of Monetary Shocks on Exchange Rate: Empirical Evidence from India

Sharma, Chandan; Setia, Rajat

doi:10.1515/sbe-2017-0030

Cited by 2 publications

(2 citation statements)

References 34 publications

(5 reference statements)

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“…When FFR experiences volatility, there is a relatively significant response due to monetary policy through the FFR interest rate instrument (Lee J, 2006). (Chandan & Rajat, 2017) also stated that monetary policy can affect output, exchange rates, and inflation. In line with this, the existence of FFR volatility also has an impact on the economic stability of developing countries, and inflation will usually occur.…”

Section: Introductionmentioning

confidence: 99%

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The Influence of Federal Funds Rate Volatility Before and During The Covid-19 Pandemic on Economic Stability in Asean Countries

Radise

Soesilowati

Haryono

2023

ECBIS

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The purpose of this study is to analyze the effect of the Federal Funds Rate before and during the Covid-19 pandemic on economic stability in five developing countries in the Southeast Asian region which are members of an economic and geopolitical organization, namely the Association of Southeast Nations (ASEAN) to see short-term relationships. and long-term during that period. The indicators of economic stability used are the benchmark interest rate for deposits, the reference interest rate for loans, the balance of payments which includes exports and imports, inflation, exchange rates, and the money supply. In this study, the method used was the quantitative method and the data obtained was secondary data sourced from International Financial Statistics (IFS) from January 2015 to December 2022 which used the Vector Error Correction Model (VECM) approach in the Eviews 9 application. The results found indicated that in the long run, the existence of FFR volatility has a positive effect on the Deposit and Export Reference Rates. While those that have a negative effect are Loan Reference Rates, Imports, Exchange Rate Inflation, and Money Supply. In the short term, the existence of the FFR interest rate has a positive effect on the Reference Rates for Deposits, Imports, and Inflation. While those that have a negative effect are Loan Reference Rates, Exports, Exchange Rates, and Money Supply

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The Influence of Federal Funds Rate Volatility Before and During The Covid-19 Pandemic on Economic Stability in Asean Countries

Radise

Soesilowati

Haryono

2023

ECBIS

View full text Add to dashboard Cite

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Interest Rate Volatility of the Federal Funds Rate: Response of the Bank Indonesia and its Impact on the Indonesian Economic Stability

Mukhlis

Hidayah

Retnasih

2020

Journal of Central Banking Theory and Practice

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This research aims to analyse the response of the Bank Indonesia (BI rate) to the Indonesian economic stability. The data analysis is stationarity test, model stability test, lag determination, Structural Vector Autoregression (SVAR), Impulse Response Function (IRF), and Variance Decomposition (VD). The research data is obtained from the publication provided by the Federal Reserve Data (FRED), the Bank Indonesia, and the Central Bureau of Statistics. The data used is since the third quarter of 2005 to the first quarter of 2017. The research results showed that the variable of the federal funds rate (FFR) significantly influences the exchange rate and the Consumer Price Index (CPI), but it does not significantly affect the BI rate, the amount of the money supply (M2), and Gross Domestic Product (GDP). The result of the IRF test showed that the BI rate, the amount of money supply, exchange rate (IDR/USD), GDP, and CPI positively and negatively respond the FFR change. The result of VD test indicated that the variation of the BI rate, the currency exchange rate, and CPI are mostly caused by the FFR variation.

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Effects of Monetary Shocks on Exchange Rate: Empirical Evidence from India

Cited by 2 publications

References 34 publications

The Influence of Federal Funds Rate Volatility Before and During The Covid-19 Pandemic on Economic Stability in Asean Countries

The Influence of Federal Funds Rate Volatility Before and During The Covid-19 Pandemic on Economic Stability in Asean Countries

Interest Rate Volatility of the Federal Funds Rate: Response of the Bank Indonesia and its Impact on the Indonesian Economic Stability

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