Prof. Jayanth R. Varma's Financial Markets Blog

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Prof. Jayanth R. Varma's Financial Markets Blog, A Blog on Financial Markets and Their Regulation. This blog is currently suspended.

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Fri, 09 Jul 2010

RBI on India and the Global Financial Crisis

The Report on Currency and Finance 2008-09 published by the Reserve Bank of India this month is on the “Global Financial Crisis and the Global Economy.” Well over two-thirds of this 380 page report is about the global crisis itself and does not contain anything new. But about a hundred pages are devoted to the impact of the global crisis on India and to the policy responses in India.

There are a number of interesting empirical analyses in these two chapters of the report. Well, there is an occasional piece of silly econometrics like the regression in levels between trending variables in footnote 9 on page 277; the absurdly high r-square of 0.9981 should have alerted the authors to the possibility (near certainty?) that this is a spurious regression. However, most of the empirical analyses do appear to be sound econometrically.

A few results that I found interesting:

Posted at 14:40 on Fri, 09 Jul 2010     View/Post Comments (3)     permanent link