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Title: REVIEW ON MEASUREMENT OF EXCHANGE RATE PASS-THROUGH IN INDIA
Authors: Dr. K. Shanmugan, Baria Bhagirath Prakash
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1*Dr. K. Shanmugan, 2Baria Bhagirath Prakash 1. Associate Professor, Department of Business Economics, Faculty of Commerce, The Maharaja Sayajirao University of Baroda, Vadodara, Gujarat. 2. Research Scholar, Department of Business Economics, Faculty of Commerce, T he Maharaja Sayajirao University of Baroda, Vadodara, Gujarat.
MLA 8 Shanmugan, Dr. K., and Baria Bhagirath Prakash. "REVIEW ON MEASUREMENT OF EXCHANGE RATE PASS-THROUGH IN INDIA." Int. j. of Social Science and Economic Research, vol. 3, no. 8, Aug. 2018, pp. 3746-3762, ijsser.org/more2018.php?id=261. Accessed Aug. 2018. APA Shanmugan, D., & Prakash, B. (2018, August). REVIEW ON MEASUREMENT OF EXCHANGE RATE PASS-THROUGH IN INDIA. Int. j. of Social Science and Economic Research, 3(8), 3746-3762. Retrieved from ijsser.org/more2018.php?id=261 Chicago Shanmugan, Dr. K., and Baria Bhagirath Prakash. "REVIEW ON MEASUREMENT OF EXCHANGE RATE PASS-THROUGH IN INDIA." Int. j. of Social Science and Economic Research 3, no. 8 (August 2018), 3746-3762. Accessed August, 2018. ijsser.org/more2018.php?id=261.
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Abstract: Once the increasing openness of an economy is taken into account, the role of foreign exchange rate becomes critical in determining its macroeconomic behaviour and outcomes. Among the various channels through which foreign exchange rate can affect an economy, the process by which it can impact domestic inflation including the degree, scope, feedbacks and lags in this process, has been broadly called Exchange Rate Pass Through. The literature on this issue is vast in the international context and is also growing continuously in the Indian context. In particular, the dimension of measurement of Exchange Rate Pass Through plays a critical role in the empirical analysis in this area primarily because of the high-degree of sensitivity of the final results to the ways in which the major variables were conceptualized and measured in the first place. Thus, this paper undertakes a review of the major evidences on Exchange Rate Pass Through in the Indian context with a special emphasis on the definitional and applied theoretical issues that emerge through this survey. It was found that the measurement strategies in this area are diverse, complex and context-specific and that despite disagreements on the best way to measure Exchange Rate Pass Through, there are several broad patterns of analysis that are common to all the major studies in this area of research.

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