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Demand for Money in India: 1953-2003

Author:
B. Bhaskara Rao   Rup Singh  


Issue Date:
2012


Abstract(summary):

The demand for money, especially in the developing countries, is an important relationship for formulating appropriate monetary policy and targeting monetary variables. In this paper we estimate the demand for narrow money in India and evaluate its robustness. It is found that there is a stable demand for money for almost half a century from 1953 to 2003. There is no evidence for any significant effects of the 1991 financial reforms.


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