Would like to know how to meanifully forecast exchange rate in between USD and Indian Rupee, both in abosulte terms and in PPT (purchasing power parity), say for next 30 years.
I know this is little difficult question but any theoretical suggestions to calculate this would be useful. India is growing at 8% annually and is expected to continue at that pace. Inflation rate is around 5.5% in India.
2006-12-03 05:12:59 · 4 answers · asked by Samudra 1 in Social Science ➔ Economics
The ratio of the median wages for workers in trading industries are an approximation for the exchange rate. Assume wages increase like productivity (GDP per worker) plus inflation. You will also need estimates of the growth of the labor force. Estimating GDP, the size of work force and inflation 30 years in the future has huge uncertainties, therefore so will your answer.
2006-12-03 17:07:38 · answer #1 · answered by meg 7 · 1⤊ 0⤋
The annual GNP of each nation issuing currency. That's about the best you can do for something like that. Greenspan did something with inflation rate projections but that's a little too far out of my realm.
2006-12-03 05:22:12 · answer #2 · answered by Ricky J. 6 · 0⤊ 0⤋
The rules of grant and demand save on with right here so as that if the cost of one forex is basically too severe it will be traded much less or in no way till the cost is decreased. besides the fact that if it quite is basically too low the figuring out to purchase and promoting would be extreme and quickly its cost would be raised. inspite of the undeniable fact that that purely a million/2 the story. products bypass between the two international places in substitute for the money. whilst the cost of a particular form of things in one united states of america bring about plenty commerce and accumulation of plenty distant places forex echange in the domicile united states of america, the substitute fee for that forex will drop till the sensible cost of the products is larger and commerce turns into slower. So it quite is the two the provision of distant places forex echange and of handmade products that take part in the substitute fee and it relies upon on the quantity (on the time-honored) of all the figuring out to purchase and promoting to besides the fact that if the substitute fee is robust or approximately to decide for the flow up or down.
2016-10-17 15:52:05 · answer #3 · answered by johannah 4 · 0⤊ 0⤋
Interest rates
GNP
Taxes
2006-12-03 05:51:05 · answer #4 · answered by soubassakis 6 · 0⤊ 0⤋