The optimal level of international reserves: evidence for India [An article from: Economics Letters]

by M. Ramachandran

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This digital document is a journal article from Economics Letters, published by Elsevier in 2004. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

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In India, the reserve demand is predominantly determined by the opportunity cost than the reserve volatility, which is in stark contrast to the overall evidence of the emerging market economies. This can, perhaps, be attributed to relatively free inflow than outflow of capital.

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