SOLUTIONS AND RECOMMENDATIONS
When there is rise in the cost of production as mentioned in Bose (2011), the manufacturing firms approach the banks for short term credit reported by Dun and Bradstreet (2012). This bank credit via money multiplier process may expand money supply. So structuralism as an approach remote from multiplierism may not work alone.
In monetary modelling involving foreign currencies the globally evolving currencies from emerging economies like offshore Chinese Yuan should not be neglected because banks are expanding their operations in the Asian offshore currency market more than before because of higher return on funds than gives the domestic market, i.e. CNY is now competing with US$ as an avenue for parking offshore the banks’ investible funds.
11.