tag:blogger.com,1999:blog-19649274.post8822874802485415242..comments2024-03-27T17:16:12.789+05:30Comments on The Leap Blog: Empirical evidence on the impact of INR/USD changes on the WPIAjay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-19649274.post-67305028543883729812010-01-12T04:00:43.442+05:302010-01-12T04:00:43.442+05:30Inr conclusion has implications for the usd. Good ...Inr conclusion has implications for the usd. Good explanationdebate popularhttp://www.debatepopular.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-77842685387421711942008-04-24T17:25:00.000+05:302008-04-24T17:25:00.000+05:30However I have noticed a drastic difference betwee...However I have noticed a drastic difference between the result presented here and the PDF file, which is named here for ref. Look at page 15 of that file. Here the IRF shows that there is short term response at abt 0.1% of WPI due to 1% impact on ex. rate and this effect diminishes (almost) after 10-15 month. Whereas here IRF shows that the same effect is persistent for long period. So which result is correct?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-67775286438035354122008-04-20T16:25:00.000+05:302008-04-20T16:25:00.000+05:30It is really amazing that surjit bhalla is not eve...It is really amazing that surjit bhalla is not even understanding pre.k.g elements of economics about imported inflation. He is in such a big position. GOD SAVE OXUS.chandruhttps://www.blogger.com/profile/02028101177304180248noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-52696199249028603282008-04-20T02:10:00.000+05:302008-04-20T02:10:00.000+05:30Precisely! Which is why I think the unrestricted V...Precisely! Which is why I think the unrestricted VAR estimates don't mean much since the ECT is significant in the VECM.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-44545138682650500522008-04-18T20:01:00.000+05:302008-04-18T20:01:00.000+05:30Yes, the paper that's mentioned in the last para o...Yes, the paper that's mentioned in the last para of the blog entry does do VECMs on this.Ajay Shahhttps://www.blogger.com/profile/03835842741008200034noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-63887823707152827602008-04-18T19:34:00.000+05:302008-04-18T19:34:00.000+05:30The impulse responses seem to be based on a 'short...The impulse responses seem to be based on a 'short run' VAR in first differences. But I think WPI and exchange rate would be cointegrated (at levels) in which case the VAR is not very informative. Both short run and long run effects need to be analyzed from the VECM model alone.Anonymousnoreply@blogger.com