{'fraction_non_alphanumeric': 0.014074074074074074, 'fraction_numerical': 0.0007407407407407407, 'mean_word_length': 5.197247706422019, 'pattern_counts': {'":': 0, '<': 0, '<?xml version=': 0, '>': 0, 'https://': 0, 'lorem ipsum': 0, 'www.': 0, 'xml': 0}, 'pii_count': 0, 'substrings_counts': 0, 'word_list_counts': {'cursed_substrings.json': 0, 'profanity_word_list.json': 0, 'sexual_word_list.json': 0, 'zh_pornsignals.json': 0}}
Quantity Theory of Money in the Indian Empirical Setting

The quantity theory of money, its various versions, empirical evidence of these versions controversies surrounding the same, the definitions of the variables included in the quantity theory, their empirical counterparts, the channels through which money affects the economy in static and dynamic periods etc., have been considered as the core of monetary economics Originally, the quantity theory in its classical versions was concerned with the explanation of price level changes. Later, money supply changes were related to the explanation of changes in nominal income. Here, the theory was transformed into approaches to the demand for money with an assumption concerning a stable relation between money and nominal income The notion of money as real balances with a given price level was related to real income in the community and the stability properties of such a relation was examined. The hidden expectations underlying stability also came into discussion. The demand for money concept was expanded to include the demand for various assets. Gradually, the empirical component of money itself went on expanding. In this paper we are concerned with empirically examining for India whether the classical relation between money and the price level holds true. 2. Quantity Theory of Money