INTERNATIONALIZATION OF RELATIONSHIP BETWEEN INFLATION AND MONEY SUPPLY POLICIES: AN EMPIRICAL STUDY OF PAKISTAN
Rabia Saghir,
Saiqa Saddiqa Qureshi and
Hina Hayat
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Rabia Saghir: Assistant Professor, Department of Economics & Finance, Foundation University Islamabad, Pakistan
Saiqa Saddiqa Qureshi: Assistant Professor, Fatima Jinnah Women University Rawalpindi, Pakistan
Hina Hayat: Lecturer, Department of Management Sciences, Foundation University Islamabad, Pakistan
Bulletin of Business and Economics (BBE), 2022, vol. 11, issue 1, 234-239
Abstract:
This study finds out the determinants of inflation by using cointegration and error corrections techniques, respectively. Money supply, real GDP, and foreign inflation significantly and positively impact inflation. This study recommends that state bank is responsible for maintaining a stable inflation level by controlling the money supply level. Similarly, state banks should provide domestic credit for capital formation goods to enhance economic growth.
Keywords: Inflation; Money Supply; Real GDP (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:rfh:bbejor:v:11:y:2022:i:1:p:234-239
DOI: 10.61506/
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