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Money and prices : some evidence from India

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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.
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Document Type: Research Article

Publication date: 1998-06-01

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