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Is Broad Money Endogenous in India? Hypothese and Some Evidence

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  • Dash, S.
  • Goyal, A.

Abstract

A new specification of the supply function of commercial bank credit is employed to examine the degree of endogeneity of broad money, and its response to certain structural variables in the Indian context. The specification allows us to avoid the identification problems that occur in a single equation format, and gives insights on the money supply process in India. The paper finds that broad money responds to the demand for speculative credit.

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Bibliographic Info

Paper provided by Indira Gandhi Institute of Development Research- in its series Papers with number 130.

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Length: 24 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:fth:indgan:130

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Keywords: INDIA ; MONEY ; BANKS ; CREDIT;

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