The Real Exchange Rate in India: Determinants and Targeting

This paper studies the behaviour of the real exchange rate (RER) in India. The first part investigates the role of important macroeconomic (behaviour and policy) variables in explaining the movement of the RER. It is found that the investment-gdp ratio, the overall fiscal deficit of the public sector and the nominal exchange rates are important explanatory variables. The second part of the paper seeks to determine whether real exchange rate targeting has been used in India as a tool in enhancing the competitiveness of the tradable sector. It is found that this is indeed the case, and moreover, the correlation between inflation and nominal devaluations is found to be small.

Eta-nucleon and eta-prime-nucleon coupling constants in QCD and the role of gluons

Coupling constants of $\eta$ and $\eta^{\prime}$ mesons with nucleons have been calculated using the method of QCD sum rules. Starting from vacuum-to-meson correlation function of interpolating fields of two nucleons, its matrix element with respect to nucleon spinors has been considered. Coupling constants at the physical points have been estimated from extrapolation of results obtained at two other points. Anomalous glue has been found to give substantial contribution to the coupling constants and also accounts for a significant OZI-rule violation.Comment: 6 pages, 3 figures and 2 table