Money Supply Drives Inflation and Income in India, Study Finds
The article examines the relationship between money supply, income, and prices in India. By analyzing data from 1950 to 2013, the study found that changes in money supply have a significant impact on both inflation and income levels in the country. The results strongly support the Monetarist view that money is the primary driver of changes in income and prices. The study highlights the importance of monetary policy in influencing macroeconomic variables in India.