A Financial Condition Index for India through Incorporation of Commercial Bank and Other Lending

Volume: 7 Number: 4 December 1, 2017
  • Sayan Banerjee
International Journal of Economics and Financial Issues Cover
International Journal of Economics and Financial Issues
PDF Download
EN

A Financial Condition Index for India through Incorporation of Commercial Bank and Other Lending

Abstract

The aim of this paper is to construct a Financial Condition Index (FCI) in context of Indian economy by incorporating a financial variables, namely commercial bank and other lending with two monetary variables, real exchange rate and short term interest rate. The paper explores if this index could act as an indicator of fluctuations in the real economy. The FCI is constructed following a weighted-sum method, with weights been assigned on the basis of estimated relative impact of each of the variables on the Gross Domestic Product (GDP) of India. The correlation between FCI thus constructed, and the inflation rate in the economy for two decades is found to be rather weak; highlighting the possibility that the dynamics of borrowing and the aggregate demand side of the Indian economy is rather unique.

Keywords

Details

Primary Language

English

Subjects

-

Journal Section

-

Authors

Sayan Banerjee This is me

Publication Date

December 1, 2017

Submission Date

December 1, 2017

Acceptance Date

-

Published in Issue

Year 2017 Volume: 7 Number: 4

IZ

https://izlik.org/JA49GL93RS

Cite

RIS / Bibtex
APA
Banerjee, S. (2017). A Financial Condition Index for India through Incorporation of Commercial Bank and Other Lending. International Journal of Economics and Financial Issues, 7(4), 526-529. https://izlik.org/JA49GL93RS
AMA
1.Banerjee S. A Financial Condition Index for India through Incorporation of Commercial Bank and Other Lending. IJEFI. 2017;7(4):526-529. https://izlik.org/JA49GL93RS
Chicago
Banerjee, Sayan. 2017. “A Financial Condition Index for India through Incorporation of Commercial Bank and Other Lending”. International Journal of Economics and Financial Issues 7 (4): 526-29. https://izlik.org/JA49GL93RS.
EndNote
Banerjee S (December 1, 2017) A Financial Condition Index for India through Incorporation of Commercial Bank and Other Lending. International Journal of Economics and Financial Issues 7 4 526–529.
IEEE
[1]S. Banerjee, “A Financial Condition Index for India through Incorporation of Commercial Bank and Other Lending”, IJEFI, vol. 7, no. 4, pp. 526–529, Dec. 2017, [Online]. Available: https://izlik.org/JA49GL93RS
ISNAD
Banerjee, Sayan. “A Financial Condition Index for India through Incorporation of Commercial Bank and Other Lending”. International Journal of Economics and Financial Issues 7/4 (December 1, 2017): 526-529. https://izlik.org/JA49GL93RS.
JAMA
1.Banerjee S. A Financial Condition Index for India through Incorporation of Commercial Bank and Other Lending. IJEFI. 2017;7:526–529.
MLA
Banerjee, Sayan. “A Financial Condition Index for India through Incorporation of Commercial Bank and Other Lending”. International Journal of Economics and Financial Issues, vol. 7, no. 4, Dec. 2017, pp. 526-9, https://izlik.org/JA49GL93RS.
Vancouver
1.Sayan Banerjee. A Financial Condition Index for India through Incorporation of Commercial Bank and Other Lending. IJEFI [Internet]. 2017 Dec. 1;7(4):526-9. Available from: https://izlik.org/JA49GL93RS