Academy of Marketing Studies Journal (Print ISSN: 1095-6298; Online ISSN: 1528-2678)


Cointegration and Causal Relationship between Money Supply (M3), Wholesale Price Index (Wpi) and Consumer Price Index (Combined) During Pre and Peak Pandemic In India: An Empirical Study

Author(s): Vidya Nakhate and Dhirendra Kumar

The present study investigates the relationship between Money Supply (M3), WPI and CPI (c) and also the impact of the time series on each other. Any change in money supply will impact the demand and thus the price rise. The study is based on secondary sources of information (monthly data) taken from RBI database from the period of 2018-19 to 2021-22. The findings of the study show that the sample data does not have normal distribution. The time series data are not stationary and at the same time they do not cointegrate each other. The researcher in this paper has tried to investigate the variables and their interdependence. The Granger causality test show unidirectional relationship between Money supply and CPI (c). The sample data related to period of study have been taken considering pre-pandemic and peak pandemic phase in Indian context.

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