The Role of Money in Explaining Business Cycles for a Developing Economy: The Case of Pakistan

Shahzad Ahmed and Farooq Pasha

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, we establish the empirical linkages between nominal and real variables of Pakistani economy using both annual and quarterly data. The focus of our empirical analysis has been limited to the post financial liberalization period starting in early 1990s. Furthermore, this paper theoretically evaluates the role of money and monetary policy in propagating business cycle fluctuations of Pakistani economy using different ways of introducing the role of money via money in utility (MIU) and cash in advance constraint (CIA) as well as with different formulation of monetary policy either through a money growth rule or Taylor type interest rate rule.

Keywords: General Equilibrium Models; Modeling and Simulations; Monetary Policy (search for similar items in EconPapers)
JEL-codes: D58 E27 E52 (search for similar items in EconPapers)
Date: 2014-04-11, Revised 2014-04-11
New Economics Papers: this item is included in nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://mpra.ub.uni-muenchen.de/55262/1/MPRA_paper_55262.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/55342/1/MPRA_paper_55342.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/55397/1/MPRA_paper_55397.pdf revised version (application/pdf)

Related works:
Working Paper: The Role of Money in Explaining Business Cycles for a Developing Economy: The Case of Pakistan (2016)
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