ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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MONEY AND BANKING-Monetary Expansion Understated

MONEY AND BANKING Monetary Expansion Understated THE growth in money supply apparently continues to be kept under check, judging by data for January 1980. Money stock (M1) expanded by Rs 218 crores or 0.9 per cent, which was lower than the expansion of Rs 286 crores or 1.4 per cent a year ago and 3.4 per cent in December 1979. The increase in M1 showed up mainly in the currency component which rose' by Rs 277 crores as compared with Rs 377 crores last year. Deposit money contracted by Rs 59 crores which was Rs 32 crores lower than the decline registered a year ago. In December 1979 deposit money had risen by Rs 642 crores, which in part is ascribable to window dressing by the banks at the time of finalisation of their annual accounts.

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