Short-Term Monetary Policy in a Developing Economy

In India, so far no attempt has been made to provide estimates of total money supply and its components on monthly basis so that seasonal fluctuations in national income (particularly in agricultural production) are taken care of. Here we shall try to find out the seasonal fluctuations in national income and money-multiplier (potential increase in total money supply for unit increase in currency) so that the total increase in money supply and the increase in its components are determined in consonance with the objective of price-stability. We shall also try to determine the genuine need of small coins.