| Popis: |
This paper examines the relationship between the Exchange Rate spill-over and Macro Economic Determinants in selected South Asian Counties (Afghanistan, India and Pakistan) employing 10 years of data from 2011 to 2021. We use macroeconomic variables - Total Investment (TIN), Inflation (INF), Imports (IMP), Exports (EXP), Government Total Expenditure (GTE), Government Net Lending (GNL) and Exchange Rate (ER). Result evidenced that selected macroeconomic variables changes do not have any connection in the changes of exchange rate of India, Pakistan and Afghanistan. The exchange rate changes are highly autocorrelated and act highly independence in the last ten years. Moreover, the depreciation of currency values replicates economic instability and drastically straight fall. Asian countries operating their currency based on a managed floating exchange rate regime. It is marking a market-determined exchange rate regime of the currency with provision for timely intervention by the central bank. This study would be useful to the retail investors to speculate and arbitrage and (economic policy) policymakers to monitor, forecasting and simulation the exchange rate movements. Keywords: Exchange Rate, Macroeconomic, Investments, Economic Policy, Forecasting and Simulation JEL Classification Number: F31, N1, G11, D04, F47. |
