Is The Money Supply Easy Or Hard To Measure
journal article
Economic and Political Weekly
Published By: Economic and Political Weekly
https://www. jstor .org/stable/4377072
Money is one of the important macro economic variables. Correct understanding of the role of money in economic activity hinges on defining and measuring money correctly. There has been a growing tendency both in India and abroad to conduct monetary analysis and policy in terms of empirically defined broad money and multiple measures of money. Recently, the Committee to Review the Working of the Monetary System also has held that M3 is the appropriate definition of money and that the money multiplier framework is dependable for money supply analysis and control. This would give a further wrong direction to the evolution of monetary theory and monetary policy as well as their information base in India. This paper seeks to undertake a fresh and comprehensive discussion of major issues relating the concept, measure, and determination of money supply with a view to restraining the tendency mentioned above. Section I examines which of the existing approaches to defining money is correct. Section II discusses the special economic characteristics of money, while section III presents a new measure of money supply for India in the light of these characteristics. Section IV examines whether and how far the money multiplier theory is empirically supported in India. [This paper is being published in two parts. Sections I and II appear below while the last two sections will be published next week.]
The Economic and Political Weekly, published from Mumbai, is an Indian institution which enjoys a global reputation for excellence in independent scholarship and critical inquiry. First published in 1949 as the Economic Weekly and since 1966 as the Economic and Political Weekly, EPW, as the journal is popularly known, occupies a special place in the intellectual history of independent India. For more than five decades EPW has remained a unique forum that week after week has brought together academics, researchers, policy makers, independent thinkers, members of non-governmental organisations and political activists for debates straddling economics, politics, sociology, culture, the environment and numerous other disciplines.
First published in 1949 as the Economic Weekly and since 1966 as the Economic and Political Weekly, EPW, as the journal is popularly known, occupies a special place in the intellectual history of independent India. For more than five decades EPW has remained a unique forum that week after week has brought together academics, researchers, policy makers, independent thinkers, members of non-governmental organisations and political activists for debates straddling economics, politics, sociology, culture, the environment and numerous other disciplines.
Is The Money Supply Easy Or Hard To Measure
Source: https://www.jstor.org/stable/4377072
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