Gold Prices, Exchange Rates, and Reserves: Econometric Insights into India’s Economy

This study analyses the dynamic interplay between the growth rate of gold prices, rupee-dollar exchange rates, and India's foreign exchange reserves over the period from 1970 to 2018. Applying cointegration and vector error correction models, we will be able to assess long-run and short-run relationships between the variables under investigation. The findings will reveal strong long-run equilibrium relationships and short-run causality among the variables in question and have implications for India's economic scenario. The results will enable policymakers to increase their understanding of these factors and design strategies to stabilize the economy amid global uncertainties.