A new specification of the supply function of commercial bank credit is employed to examine the degree of endogeneity of broad money, and its response to certain structural variables in the Indian context. The specification allows us to avoid the identification problems that occur in a single...

In our intertemporal optimizing model the equilibrium real exchange rate is determined by a sustainable balancing of the current and capital accounts of the balance of payments. Under perfect global capital mobility and managed exchange rate, a rise in expected depreciation of the exchange rate...