Money, Output and Prices in India

34 Pages Posted: 20 Dec 2015

See all articles by Charan Singh

Charan Singh

Indian Institute of Management (IIMB), Bangalore

Rohan Das

Indian Institute of Management (IIMB), Bangalore - Department of Economics and Social Sciences

Jafar Baig

Indian Institute of Management (IIMB), Bangalore

Date Written: November 30, 2015

Abstract

The dynamics of the monetary system is undergoing significant changes in India. The entire concept and flow of money; narrow, broad or base, is being influenced by measures related to financial inclusion and also behavioural changes with respect to the increase in usage of plastic money and other payment methods. Given this context, the paper aims to re-examine relationship between money supply, output and prices in the short and long-term. Different metrics for money, output and prices are used to understand the relationship between each. Variables to understand food inflation is especially used considering the fact that food prices are less income elastic and are viewed differently by citizens. The findings indicate that the relationship is sensitive to the choice of variable.

Keywords: Granger Causality, Johansen Test, Money Supply, Industrial Production, Price Indices

Suggested Citation

Singh, Charan and Das, Rohan and Baig, Jafar, Money, Output and Prices in India (November 30, 2015). IIM Bangalore Research Paper No. 497, Available at SSRN: https://ssrn.com/abstract=2705400 or http://dx.doi.org/10.2139/ssrn.2705400

Charan Singh (Contact Author)

Indian Institute of Management (IIMB), Bangalore ( email )

Bannerghatta Road
Bangalore, Karnataka 560076
India
080-26993818 (Phone)

Rohan Das

Indian Institute of Management (IIMB), Bangalore - Department of Economics and Social Sciences ( email )

Bannerghatta Road
Bangalore, Karnataka 560 076
India

Jafar Baig

Indian Institute of Management (IIMB), Bangalore ( email )

Bannerghatta Road
Bangalore, Karnataka 560076
India

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
79
Abstract Views
572
rank
369,417
PlumX Metrics