ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles By Swapnil Suryavanshi

Exchange Rate Pass-through in India

Exchange rate pass-through measures the responsiveness of prices to exchange rate changes. In this paper, the ERPT is estimated with respect to different price indices, namely the import price index, core inflation index (WPI_MP), wholesale price index, and consumer price index. This paper uses structural vector autoregressive and autoregressive distributed lag models for analysis. The presence of incomplete ERPT is observed with variations across price indices. In the short run, the extent of ERPT is the highest on IPI, followed by WPI, CPI and lowest on WPI_MP. The impact of crude oil prices and interest rate on exchange rate and domestic prices is also analysed.