Demand for Money in India during the Period of Rapid Inflation

The period 1972-74 is characterised by the presence of an inflationary trend. The latter though persistently visible after 1962, waS much different during 1972-74 in that the rate of change of price level became positive - a stage of inflation when the economy deviates from the path of stable moving equi1ibrium. The period, 1972-74 is therefore being termed as that of rapid inflation.