India's Money Demand Stable Despite Structural Break, Impacting Economic Stability
The article examines the stability of money demand in India from 1953 to 2007. By using specific statistical methods, the researchers found that there is a stable relationship between the demand for money, real GDP, and nominal interest rate, with a structural break occurring in 1965. The analysis also revealed a slight decrease in the demand for money around 1965. Overall, the study suggests that the demand for money in India remained stable, except for the period between 1975 and 1998.