Browsing by Author "J. Saunders, Peter"

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    Money and price level in India: an empirical analysis
    (1990) Biswas, Basudeb; J. Saunders, Peter
    When discussing the impact of money changes on an economy, the direction of causal flow must be established. it is important to determine whether changes in the money stock influence such economic variables as nominal output or prices. One view about causality in money-price relationship is associated with the "Banking School". According to this view the supply of money passively responds to the demand for it. this means that the nominal stock of money is an endogenous variable which depends on business conditions.