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• hi, iam a grad student at an indian university. i have been wondering at the relationship between interest rates and exchange rates. i was trying to link the
Message 1 of 3 , Aug 6, 2001
hi,

iam a grad student at an indian university. i have been wondering at
the relationship between interest rates and exchange rates. i was
trying to link the theory with the practical situation, and even
thought i would run a regression with the simple monetary model of
exchange rate determination. but while looking up the data for the
interest rate i did not know which interest rate t consider.

for example in India we have the prime lending rate and the other
rates too. can any of u tell me which one i should be using in my
analysis? the question might seem silly to many of you nevertheless i

cheers
triya
• im not really sure with the set-up you have in india in your own bureau of treasury. but here in the philippines, we use the 91-tbill rate,this is where we
Message 2 of 3 , Aug 6, 2001
im not really sure with the set-up you have in india
in your own bureau of treasury. but here in the
philippines, we use the 91-tbill rate,this is where we
base our prime lending and borrowing rate.

--- "Triyakshana.V" <triyakshana@...> wrote:
> hi,
>
> iam a grad student at an indian university. i have
> been wondering at
> the relationship between interest rates and exchange
> rates. i was
> trying to link the theory with the practical
> situation, and even
> thought i would run a regression with the simple
> monetary model of
> exchange rate determination. but while looking up
> the data for the
> interest rate i did not know which interest rate t
> consider.
>
> for example in India we have the prime lending rate
> and the other
> rates too. can any of u tell me which one i should
> be using in my
> analysis? the question might seem silly to many of
> you nevertheless i
>
> cheers
> triya
>
>

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• Hi Triya, It s me, Jade. I guess the best option is to use the interest rate that most businessmen, business analysts and policymakers observe and treat as the
Message 3 of 3 , Aug 6, 2001
Hi Triya,

It's me, Jade. I guess the best option is to use the
and policymakers observe and treat as the interest
rate that "lead" the other interest rates. Here in the
Philippines, that's the 91-day Treasury Bill rate.

--- "Triyakshana.V" <triyakshana@...> wrote:
> hi,
>
> iam a grad student at an indian university. i have
> been wondering at
> the relationship between interest rates and exchange
> rates. i was
> trying to link the theory with the practical
> situation, and even
> thought i would run a regression with the simple
> monetary model of
> exchange rate determination. but while looking up
> the data for the
> interest rate i did not know which interest rate t
> consider.
>
> for example in India we have the prime lending rate
> and the other
> rates too. can any of u tell me which one i should
> be using in my
> analysis? the question might seem silly to many of
> you nevertheless i