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Stability of Demand for Money Function by Business Firms in India

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  • Sherry Bawa
  • Gian Kaur

Abstract

The present study is an attempt to test the stability of the demand for money function of business firms in India over the time period 1980-81 to 2004-05. To perform the stability test, the period of liberalization has been considered, and the study period has thus been divided into two sub-periods, viz., 1980-81 to 1990-91 and 1991-92 to 2004-05, i.e., the pre-liberalization period and the post-liberalization period respectively. The study has been conducted at aggregate level for all non-financial firms and at disaggregate level for five industrial groups. The study concludes that the overall demand for money function of the business firms in India has remained stable over time.

Suggested Citation

  • Sherry Bawa & Gian Kaur, 2010. "Stability of Demand for Money Function by Business Firms in India," The IUP Journal of Monetary Economics, IUP Publications, vol. 0(4), pages 23-45, November.
    • Handle: RePEc:icf:icfjmo:v:08:y:2010:i:3:p:23-45
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    1. repec:idn:jimfjn:v:4:y:2018:i:2:p:1-18 is not listed on IDEAS
    2. Farzaneh Sadeghi & Saeed Khadivy Rofougar, 2018. "The Money Demand Functions In Islamic Economy: New Evidence From Iran-Ardl Approach," Journal of Islamic Monetary Economics and Finance, Bank Indonesia, vol. 4(2), pages 205-222, November.

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