ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by K A MenonSubscribe to K A Menon

Reserve Money, Money Stock and Money Multiplier, 1960-1988

The author's analysis of the sources of change in money supply brings out the diminishing contribution of the money multiplier in inducing monetary expansion and the enhanced role of reserve money. In the context of the erratic behaviour of currency and the already high level of reserve requirements, the importance of reserve money together with the reduced scope for influencing the credit creating capabilities of the banking sector point to new areas of policy reasearch and action.

Interest Cost and Rate of Profit in Indian Corporate Sector

in Indian Corporate Sector K A Menon Study of the behaviour of the average rate of interest or the share of interest cost in the value of production and value added, though important in itself, does not provide conclusive evidence of the nature of the interest burden borne by industries. This paper seeks to assess the interest burden on the corporate sector against the accepted norm of marginal efficiency of capital. Data for the study are taken from the analyses of the finances of non-financial companies periodically conducted by the Reserve Bank of India and the ICICI.

Interest Costs in Indian Industries An Econometric Analysis

An Econometric Analysis K A Menon To bring the cost of capital in alignment with the 'scarcity value' of capital in the economy and to bring about more efficient allocation of productive resources, there has been, over the years, a gradual raising of interest rates on saving media and on loans. This has given rise to sporadic protests that interest rate policy has tended to become growth-inhibitive. Countering this view, it has been argued that despite the general scarcity of capital the level of interest rates in the country has been kept artificially low resulting in poor saving, absence of cost consciousness and misdirection of scarce resources.

State-Level Money Stock Measures-An Estimate

K A Menon This paper attempts, for the first time, to present information on two important money stock measures, M1 and M3, for the States and Union Territories, Monetary statistics at present compiled and published by the Reserve Bank relate to monetary aggregates on an all-India basis. The spatio-temporal movements in money stock measures and their causative factors are subsumed in these data, rendering it difficult to study State level trends.

Savings and Investment without Growth

S L Shetty K A Menon A striking feature of the performance of the Indian economy in recent years, which has been widely noticed, is the very high rates of savings and investment achieved.

Some Proposals for the Union Budget for 1977-78

leaders were concerned Congress interests were national interests. For them, Congress was a party with a mass base which was trying to bring into effect the Gandhian programme of national reconstruction. Misra goes on to condemn the Congress for being 'hungry for power'' One wonders what he considers the business of a political party to be! After two centuries of British exploitation it was not, only the Congress but the Indian nation which was hungry for power. Misra has failed to understand the rationale of the Congress movement, and by trying to pin it down as the party of the upper middle classes makes some bad misjudgments about modern Indian history.

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

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