Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics

P. R. Rao , Balbir Singh

Abstract

The objective of this paper is to explain and quantify the phenomenon of the rising price level and to indicate the rate of expansion in money supply given the rates of growth in agriculture and industrial production and the velocity of circulation of money supply such that price-stability is maintained. The analysis has been done on long-term basis so that a deeper insight may be had of the problem of rising prices.

Full Text

     

Balbir Singh

Abstract

In India, so far no attempt has been made to provide estimates of total money supply and its components on monthly basis so that seasonal fluctuations in national income (particularly in agricultural production) are taken care of. Here we shall try to find out the seasonal fluctuations in national income and money-multiplier (potential increase in total money supply for unit increase in currency) so that the total increase in money supply and the increase in its components are determined in consonance with the objective of price-stability. We shall also try to determine the genuine need of small coins.

Full Text