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Title: |
Complementarity between Money and Capital in a
Developing Economy: A Test of Stability |
| Author: |
Laumas, Prem S. |
| Author
Affiliation: |
Northern IL U |
| Source: |
International Economic Journal, Summer 1990, v. 4, no. 2, pp. 87-95 |
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Publication Date: |
Summer 1990 |
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Abstract: |
The author argues that the success of a
policy of financial liberalization in stimulating the rate of capital
formation depends on the extent to which the demand for money and the
investment functions are stable. Time varying parameter technique is
used to test alternative specifications of the demand for money and the
investment functions. The author concludes that a modified version of
the McKinnon hypothesis explains the success of the monetary policy
pursued by the Reserve Bank of India during the period under review. |
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