Abstract
Volatility in interest rates has direct and indirect effects on the economy, particularly on businesses. Studies indicate that due to deregulation, following liberalization of economies, the interest rate volatility has surged worldwide, with India among the highest-volatility counties. Hedging in interest rate futures helps stabilize interest costs enabling businesses to remain competitive. Transparency of futures leads to increased lending at market determined rates, moderation of external shocks, better operating decisions, etc. India's maiden effort to start interest rate futures in 2003 failed due to certain inadequacies in product design. Here is an attempt to look at the need for and development of interest rate futures market in India.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Macroeconomics and Finance in Emerging Market Economies
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
