The paper is an attempt to analyze the behavior of money demand function in India using annual data for the period 1953-2008. Gregory and Hansen (1996) cointegration results show the presence of cointegration between demand for money, real GDP and nominal interest rate with structural break in...

This paper attempts to take a meticulous look on stability of money demand in India Using annual data for period 1953-2007 and the Hansen (1992) and Gregory Hansen (1996) co-integration approaches with structural break. Results of the Gregory Hansen (1996) cointegration analysis show the...