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country: INDIA Is the trade balance sensitive to changes in foreign prices for imports and exports Estimate which quadrant of the SWAN diagram your country
country: INDIA
- Is the trade balance sensitive to changes in foreign prices for imports and exports
- Estimate which quadrant of the SWAN diagram your country of choice may be operating in? (Note you are not expected to identify the relative elasticities of IB and EB schedules)
- What might that predict about the role for policymakers - what should be the policy focus - internal and external balance
- what drives the RER - is it changes in the price of Non tradeables or the nominal exchange rate
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