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Money Growth, Inflation, and Causality (EmpiricalEvidence for Pakistan, 1973-1985)

Jonathan D. Jones and Nasir M. KHIUl
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Jonathan D. Jones: University of America, Washington, D.C.
Nasir M. KHIUl: Catholic University of America, Washington, D.C.

The Pakistan Development Review, 1988, vol. 27, issue 1, 45-58

Abstract: This paper uses the Granger direct test to evaluate the causal relationship between growth in money supply and inflation in Pakistan. The historical period investigated extends from 1973 to 1985. The results of the test show that money growth had a significant impact on inflation during the period considered. In addition, there is some evidence at hand showing that inflation, too, affected money growth over the 1973-1985 period.

Date: 1988
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Handle: RePEc:pid:journl:v:27:y:1988:i:1:p:45-58