Causality between Money and Price Level in India Revisited

While using Sims' Methodology we found (in an earlier paper) our conclusion about causality between money and price level to be somewhat ambiguous.

In this paper we have re-examined this issue while using only Granger test. We have found that there exists a unidirectional causality running from M₁ to P (money narrowly defined and price level) on the one hand and from M₃ to P on the other (money broadly defined and price level).