Stability of Demand for Money Function by Business Firms in India

The IUP Journal of Monetary Economics, Vol. VIII, No. 4, pp. 23-45, November 2010

Posted: 25 Jan 2011

See all articles by Sherry Bawa

Sherry Bawa

Curtin University - School of Economics and Finance

Gian Kaur

Guru Nanak Dev University, Amritsar (Punjab)

Date Written: January 24, 2011

Abstract

The present study is an attempt to test the stability of the demand for money function of business firms in India over the time period 1980-81 to 2004-05. To perform the stability test, the period of liberalization has been considered, and the study period has thus been divided into two sub-periods, viz., 1980-81 to 1990-91 and 1991-92 to 2004-05, i.e., the pre-liberalization period and the post-liberalization period respectively. The study has been conducted at aggregate level for all non-financial firms and at disaggregate level for five industrial groups. The study concludes that the overall demand for money function of the business firms in India has remained stable over time.

Suggested Citation

Bawa, Sherry and Kaur, Gian, Stability of Demand for Money Function by Business Firms in India (January 24, 2011). The IUP Journal of Monetary Economics, Vol. VIII, No. 4, pp. 23-45, November 2010, Available at SSRN: https://ssrn.com/abstract=1746537

Sherry Bawa (Contact Author)

Curtin University - School of Economics and Finance ( email )

GPO Box U 1987
Perth, Western Australia 6845
Australia

Gian Kaur

Guru Nanak Dev University, Amritsar (Punjab) ( email )

GT ROAD Amritsar
GT, ROAD AMRITSAR
Amritsar, Punjab 143005
India

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