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 546
- Downloads 34
DOES HIGHER EDUCATION REDUCE POVERTY AMONG YOUTHS IN NIGERIA?
Poverty is a serious problem in Nigeria with estimated 70.2 percent of Nigerians on less than 1$ daily. Poverty in Nigeria resembles a paradox, with her wealth; she still faces an enormous challenge in her effort to redu...
COST AND PROFIT EFFICIENCY AND MANAGEMENT BEHAVIOUR OF COMMERCIAL BANKS (EVIDENCE FROM TANZANIA)
Using non-parametric technique (the Data Envelopment Analysis - DEA) for data from 1998 to 2011, we investigate the cost and profit efficiency and management behaviour of 25 Tanzanian commercial banks. We examine the inf...
EFFECTS OF SMS ON WRITING SKILLS OF THE UNIVERSITY STUDENTS IN PAKISTAN (A CASE STUDY OF UNIVERSITY OF GUJRAT)
The current study is intended to discover the effect of the SMS using habits on writing skills of the university students of Pakistan and to show how this novel medium of communication is affecting the writing skills of...
CORPORATE FAILURE PREDICTION MODELS FOR ADVANCED RESEARCH IN CHINA: IDENTIFYING THE OPTIMAL CUT OFF POINT
The rapid growth of the Chinese economy has resulted in Chinese listed companies entering numerous global supply chains, and thereby contributing to the globalization of economies. Accurately predicting corporate distres...
AN EMPIRICAL ANALYSIS OF EFFECT OF PUBLIC DEBT ON ECONOMIC GROWTH IN INDIA IN THE POST-REFORM ERA
The present paper examines the causal nexus between public debt and economic growth for 15 NSC states of India for the period 1991-2015 using Dumitrescu Hurlin causality test. The panel causality test identified the endo...