Exploring the Interplay Between Inflation, Currency Depreciation, and Macroeconomic Metrics in India

Abstract

This research explores the complex interactions between inflation, currency depreciation, and key macroeconomic indicators within the context of India's rapidly evolving economy. Employing empirical analysis and econometric modelling, the study unveils a symbiotic relationship between inflation and currency depreciation, demonstrating their mutual influence. Additionally, it uncovers how these factors impact critical metrics such as GDP growth, trade balances, foreign exchange reserves, and interest rates. The findings underscore the need for a comprehensive policy approach to address these interconnected dynamics, offering valuable insights for policymakers, economists, and financial analysts navigating India's economic landscape. In conclusion, this research enhances our understanding of the intricate interplay between inflation, currency depreciation, and macroeconomic metrics in India, providing a foundation for informed economic policy decisions and contributing to the ongoing discourse surrounding India's economic stability and growth prospects.