Theoretical and Applied Economics
No. 3 / 2017 (612), Autumn
Financial conditions index (FCI), inflation and growth: Some evidence
University of Hyderabad, India
Abstract. This paper first estimate financial conditions index (FCI) for India and then examines the empirical performance of the financial conditions index (FCI) to predict inflation and GDP growth. For optimal coverage of all major set of indicators, those which are determining the Indian economies, financial conditions, so we have broken financial conditions index into four sub-indices including major key indicator. The sub –indices of FCI include (i) short term rate of interest (CMR), (ii) exchange rate, (iii) housing price index (iv) FDI total inflow, each with equal weights. Based on granger causality and correlation test with quarterly data, the finding of this paper is the financial condition index is able to predict inflation bitterly.
Keywords: monetary conditions index, financial conditions index, housing price index.
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Contents
- The European Union's strategy for increasing the living conditions of the population in the member states
Constantin ANGHELACHE
Mădălina Gabriela ANGHEL
- Does institutional environment
affect the economic development?
Evidence from selected CEE countries
Lejla TERZIĆ
- Causality between economic policy uncertainty and exchange
rate in China with considering quantile differences
Yin DAI
Jing-wen ZHANG
Xiu-zhen YU
Xin LI
- What impact has free trade area on economies of ASEAN-5 countries?
Abidin ÖNCEL
Raisal Fahrozi LUBİS
- Hard currency inflows and sterilization policy in Algeria:
An ARDL approach
Aissa DJEDAIET
Hicham AYAD
- Evaluating Indian economy’s vulnerability
to currency crisis
Mohana Rao BALAGA
Puja PADHI
- Does fiscal policy spur economic growth?
Empirical evidence from Algeria
Amal MATALLAH
Siham MATALLAH
