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.
Contents
The European Union's strategy for increasing the living conditions of the population in the member states
Does institutional environment affect the economic development? Evidence from selected CEE countries
Causality between economic policy uncertainty and exchange rate in China with considering quantile differences
An agency theory approach on Romanian listed companies’ capital structure
What impact has free trade area on economies of ASEAN-5 countries?
Is more government debt or currency depreciation expansionary? The case of Poland
Long-memory, self-similarity and scaling of the long-term government bond yields: Evidence from Turkey and the USA
Hard currency inflows and sterilization policy in Algeria: An ARDL approach
Evaluating Indian economy’s vulnerability to currency crisis
Impact of fiscal responsibility legislations on state finances in India
Does fiscal policy spur economic growth? Empirical evidence from Algeria
Financial conditions index (FCI), inflation and growth: Some evidence
On the effects of total productivity growth of economic freedom and total resource rents: The case of both natural resource rich and OECD countries