We have observed that the Indian banks’ balance sheets have strengthened considerably, financial markets have deepened and widened and, with the introduction of the real time gross settlements (RTGS) system, the payment system has also become robust. 4.
This preference reflects again the uncertainty about the structure of the economy and about short-run dynamics and the long and variable lags in the response of aggregate demand to changes in the money supply. There is an over-riding theme across these features of monetarism: They focus on the role of money and the conclusion that "money matters."