Interrelationship Between Money, Price and Income in Nepal: A Granger Causality Approach - Softcover

Rami, Gaurang; Chaudhary, Shashikant

Softcover

ISBN 10: 3659548731 ISBN 13: 9783659548734

Verlag: LAP LAMBERT Academic Publishing, 2014

Inhaltsangabe

The causal relationships between money, income & prices have been an active area of investigation in economics, particularly after the advent of causality concept by Granger (1969) and its application by Sims (1972). The Monetarists claim that changes in stock of money plays an important role to determine changes in nominal income and prices. Keynesians argued that changes in income cause changes in money stock via demand for money. In this book, the issues of causality between money supply, price level and income has been examined for Nepal. The annual data shows causality running from money supply to income, which suggests that income growth is endogenous and monetary policy regarding money supply can play an important role in determining income growth in Nepal. There is no causality between money supply and price level suggesting that inflation is not purely a monetary phenomenon in Nepal and changes in price level are caused by structural factors as explained by the Keynesians. The monthly data partially indicates that price level causes money supply in Nepal. It means that monthly money supply is endogenous and increasing money supply is due to increase in the inflation rate.

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Über die Autorin bzw. den Autor

Dr. Gaurang Rami is working as Professor at Department of Economics, Veer Narmad South Gujarat University, Surat, Gujarat, India & Mr. Shashikant Prasad Chaudhary is serving as Deputy Director, Nepal Rastra Bank, Research Department, Baluwatar Kathmandu, Nepal. Dr. Rami & Mr. Chaudhary has more than 12 years of teaching and research experience.

Details zur Ausgabe

• Verlag: LAP LAMBERT Academic Publishing
• Erscheinungsdatum: 2014
• Sprache: Englisch
• ISBN 10: 3659548731
• ISBN 13: 9783659548734
• Einband: Taschenbuch
• Anzahl der Seiten: 76
• Kontakt zum Hersteller: Nicht verfügbar
• Verantwortliche Person: SIA OmniScriptum Publishing; customerservice@vdm-vsg.de; ; Brivibas gatve 197; Riga; 1039; Lettland