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Demand for money in India: 1953–2003

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Abstract:

The demand for money, especially in the developing countries, is an important relationship for formulating appropriate monetary policy and targeting monetary variables. In this paper the demand for narrow money in India is estimated and its robustness evaluated. It is found that there is a stable demand for money for almost half a century from 1953 to 2003. There is no evidence for any significant effects of the 1991 financial reforms.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840500396228

Affiliations: University of the South Pacific, Suva, Fiji

Publication date: June 20, 2006

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