Money Supply Analysis-Further Comments

Further Comments S L Shetty V A Avadhani K A Menon IN a recent article, Suraj B Gupta found fault with the Reserve Bank's framework of presentation of data re- lating to 'factors affecting money supply and suggested an alternative approach based on the money multiplier theory of money supply determination.1 Analysing the theoretical and conceptual issues involved, N A Mujumdar has shown that an analysis based on the money-multiplier is unsatisfactory