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Money and prices : some evidence from India

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  • Basanta Pradhan
  • A. Subramanian

Abstract

The objective of this paper is to examine the long-run relationship between supply of money and prices. The prices considered are wholesale price and consumer price indices for industrial workers, urban non-manual workers and agricultural labourers. Using the null hypothesis of cointegration, it is shown that the supply of money and consumer price indices for urban non-manual workers and agricultural labourers are cointegrated in the long-run. Both the prices - namely, urban non-manual workers and agricultural labourers - form a stable relationship with money supply in the long-run.

Suggested Citation

  • Basanta Pradhan & A. Subramanian, 1998. "Money and prices : some evidence from India," Applied Economics, Taylor & Francis Journals, vol. 30(6), pages 821-827.
    • Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:821-827
    DOI: 10.1080/000368498325525
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    References listed on IDEAS

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    1. Mr. Robert J. Corker & Ms. Wanda S Tseng, 1991. "Financial Liberalization, Money Demand, and Monetary Policy in Asian Countries," IMF Occasional Papers 1991/002, International Monetary Fund.
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    Cited by:

    1. Sushanta Mallick, 2004. "A dynamic macroeconometric model for short-run stabilization in India," Applied Economics, Taylor & Francis Journals, vol. 36(3), pages 261-276.
    2. Shaikh Hamid & Tej Dhakar, 2008. "The behaviour of the US consumer price index 1913-2003: a study of seasonality in the monthly US CPI," Applied Economics, Taylor & Francis Journals, vol. 40(13), pages 1637-1650.
    3. Santosh Kumar Dash, 2017. "Is Money Supply Exogenous? Evidence from India," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 11(2), pages 167-195, May.
    4. Mallick, Sushanta K., 2005. "Tight credit policy versus currency depreciation: Simulations from a trade and inflation model of India," Journal of Policy Modeling, Elsevier, vol. 27(5), pages 611-627, July.
    5. Jagadish Prasad Sahu, 2013. "Inflation dynamics in India: A hybrid New Keynesian Phillips Curve approach," Economics Bulletin, AccessEcon, vol. 33(4), pages 2634-2647.
    6. Biswajit Maitra, 2016. "Inflation Dynamics in India: Relative Role of Structural and Monetary Factors," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 14(2), pages 237-255, December.
    7. Ajit R. Joshi & Debashis Acharya, 2011. "Inflation Model for India in the Context of Open Economy," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 12(1), pages 39-59, March.

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