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This study attempts to investigate the causal relationship between gold price, exchange rate and current account deficit (CAD) on the basis of time series data for 14 years from 2002 to 2016. In recent days gold has attracted the attention of economists, researchers, policy-makers and common man. There is a general view that recent current account deficit (CAD) is attributed to mainly gold import only as crude oil price has fallen considerably. It is with this backdrop, this article tries to unveil any dynamic, if exist, between gold price and CAD applying augmented Dickey-Fuller (ADF) test and Phillips-Perron (PP) Test which are used to test the stationarity of time series data and block exogeneity Wald Test to establish the causality relationship among them. On the basis of quarterly observation for the aforesaid period, it has been found that these three variables are stationary of order one and the study further found the existence of bi-directional Granger causality between gold price and CAD, which is running from gold price to CAD and vice-versa. The findings of the study have significant implication for India's economic policy and facilitate the Government to make strategies to reduce the CAD.

This paper studies the dynamic relationship between the stock returns volatility in the emerging financial markets, i.e., BRICS stock markets. The paper examined the volatility of each individual BRICS stock market returns during and after the 2008 US subprime crisis. The time series data of closing stock prices for four years was collected on daily basis from 1st January, 2007 to 31st December, 2010. For the methodology generalised auto regressive conditional hetroscedasticity (GARCH) model has been used to examine the difference in the stock return volatility of the respective BRICS stock indices during and after US subprime crisis of 2008 on individual basis. The study found that BRICS stock market except Russian stock market has been significantly affected by the news of recession in US stock market and stock returns volatility has significantly changed during the crisis and recovery periods but these changes are not uniform and depend upon the individual markets. This study is important for the foreign institutional investors (FIIs) and domestic institutional investors (DIIs) seeking portfolio diversification.