Modelling currency in circulation in India

Kaushik Bhattacharya () and Himanshu Joshi

Applied Economics Letters, 2001, vol. 8, issue 9, 585-592

Abstract: In the literature, currency in circulation is typically estimated either by specifying a standard currency demand equation based on the theory of transaction or portfolio demand for money or by a univariate time series model. The paper argues that while these approaches work well for low frequency data, their scopes become limited for high frequency series. Using the weekly data of currency in circulation from the year 1992-1993 to 1999-2000, the paper proposes an alternative approach of modelling the growth of currency in circulation by incorporating the 'day of the month' effect. The estimated equation behaves very well in and out of sample and the prediction performance achieved from the model has been good.

Date: 2001
References: View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.informaworld.com/openurl?genre=article& ... 40C6AD35DC6213A474B5 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:8:y:2001:i:9:p:585-592

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504850010020146

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().