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Dynamics of the relation between supply of money, capital formation, interest rate, inflation and economic growth in india in the post reform period
Subject Area:
Social Sciences and Humanities
Abstract:
As is well known the chief objective of any economy revolves around growth of national income. India has been star post 2009 recession among all nations to sustain the pace of economic growth at a fair rate. However the nation faces challenges on many fronts. The synchronisation of the monetary and the fiscal policies play a crucial role in determining the rate and direction of growth. The present paper delves into the possible impact of money supply and other closely related variables like interest rate, inflation rate along with capital formation as a variable.
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