Variations in Prices due to Anticipated and Unanticipated Money
Journal Title: Asian Economic and Financial Review - Year 2012, Vol 2, Issue 1
Abstract
The relation between money and price has unique relevance in price stability. Rational expectations theorists hold that both anticipated and unanticipated money supply affect price level. This paper addresses this issue and enquires if anticipated and unanticipated money supplies have any role in the variations in whole sale and consumer prices (WPI & CPI) in India over the period 1992:Q1 to 2010:Q3. It is found that both anticipated and unanticipated money supply shocks cause rise in WPI and CPI inflation and justifying the rational expectations proposition. Price level, therefore, can be stabilized through appropriate monetary management.
Authors and Affiliations
Biswajit Maitra| Assistant Professor of Economics Surya Sen College, West Bengal, India, C. K. Mukhopadhyay| Professor of Economics University of North Bengal, West Bengal, India
Keywords
Related Articles
- EP ID EP1744
- DOI -
- Views 548
- Downloads 34
THE EFFECT OF ECONOMIC FACTORS ON MENTAL DISORDER RESULTING TO CRIME
Nowadays, social criteria such as economic situation, educational degree, and marital status and so on play a significant role in individual development and growth in community. Lack of such parameters provides backgroun...
THE CAUSAL RELATIONSHIPS BETWEEN COMPONENTS OF CUSTOMER-BASED BRAND EQUITY FOR A DESTINATION: EVIDENCE FROM SOUTH KOREAN TOURISTS IN DANANG CITY, VIETNAM
The main purpose of this study is to examine the causal relationships between components of customer-based brand equity for a tourist destination. We have collected data from 252 South Korean tourists in Danang City and...
KOREA’S INPAYMENTS AND OUTPAYMENTS WITH THE REST OF THE WORLD: IS THERE ROOM FOR CURRENCY MANIPULATION?
In estimating the well-known Marshall-Lerner condition, researchers have used trade volume data between one country and rest of the world. To reduce aggregation bias in these studies, it is proposed to use trade data at...
THE CAUSALITY BETWEEN INCOME INEQUALITY AND ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM THE MIDDLE EAST AND NORTH AFRICA REGION
This paper explores the causality problem between income inequality and economic growth for 9 countries of Middle East and North Africa (MENA) region for the period ranging from 1960 to 2011. In this study, we applied th...
RELATIONSHIP BETWEEN FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH, EVIDENCE FROM FINANCIAL CRISIS
This research studies the influence of financial development on economic growth with emphasis on the recent financial crisis. Variables considered in this study are indicators of financial development consisting of the r...