Growth of Money Supply in India during 2006-2016

Abstract

Money supply plays an important role in terms of affecting the national income, prices, trade etc. There- fore, regulation of required changes in money supply is pre requisite for the smooth functioning of the economy. In a developing country like India when development efforts are made through government expenditure,

Money supply in the economy automatically increases. Hence over expansion of money supply may take place in developing countries like India. Therefore, to regulate the money supply there has always been a need for scientific study on money supply, money supply prepared a base for deciding the short term and the long term monetary and price policies for the economy. So this paper highlights the money supply components and their evaluation.