Monetary Targeting in Pakistan: A Skeptical Note
Muhammad Omer () and
Omar Saqib ()
No 25, SBP Working Paper Series from State Bank of Pakistan, Research Department
The objective of this study is to evaluate monetary targeting strategy in Pakistan by testing the Quantity Theory of Money and the income velocity of money stated by Monetarists and the endogenous money hypothesis postulated by the Post Keynesians. Our tests on the Pakistani data covering about thirty years reveal that the quantity theory is an inadequate explanation of inflation, income velocity of money is unstable, and money is endogenous. These results suggest rethinking on monetary targeting strategy in Pakistan. Length: 23 pages
Keywords: Monetary Targeting; QTM; income velocity of money; endogenous money (search for similar items in EconPapers)
JEL-codes: E12 E5 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed
Downloads: (external link)
http://www.sbp.org.pk/repec/sbp/wpaper/wp25.pdf First version, 2008 (application/pdf)
Journal Article: Monetary Targeting in Pakistan: A Skeptical Note (2009)
Working Paper: Monetary Targeting in Pakistan: A Skeptical Note (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:sbp:wpaper:25
Access Statistics for this paper
More papers in SBP Working Paper Series from State Bank of Pakistan, Research Department Contact information at EDIRC.
Bibliographic data for series maintained by Faisal Saleem ().