Abstract

Abstract: Thereport reviews the macroeconomic performance of United States since 2012. Itbriefly summarises the key macroeconomic developments such as economic growth,inflation, monetary supply &exchange rate. This report also throws light on the computation of inflation rates byConsumer price index & total factor productivity. The relationship betweenNominal interest rate & Real interest rate is also depicted through fishereffect. The correlation between money supply & inflation is also taken intoconsideration to reflect the impact of these variables on economic growth ofthe United States. The earnings & market capitalisation of BSE 500 indexcompanies is also calculated to check the compatibility of Bombay stockexchange with that of US economy. The real appreciation & depreciation ofIndian rupee in comparison to United States dollar has also been analysed. Withthe help of Interest rate parity theorem, the deviation between expected &actual changes in the exchange rate of Indian rupee & Unites States Dollaris also brought into concern. The report analysis past five year’s data to formup a valid conclusion.