Financial Innovation and Stability of Money Demand Function in Post–reform period in India
Innovation in financial sector, financial reforms and changes in the policy environment are the factors responsible for instability in the money demanded in an economy. The dawn of 1991 balance of payment crisis in India brought much needed reforms in the economy and financial sector and triggered financial innovation fueled with revolution in information technology world wide and in India. In this backdrop this paper attempts to take a meticulous look on stability of money demand in India with quarterly data for 1996–97:1–2009–10:3 period. Based on Gregory–Hansen (1996) method of co–integration estimation the analysis confirms that in contrast to most of the previous studies, money demand function in India is not stable in the post reform period.
Volume (Year): 30 (2010)
Issue (Month): 4 ()
|Contact details of provider:|| |
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-10-00336. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.