Political Instability and Inflation in Pakistan
Safdar Ullah Khan () and
Omar Saqib ()
Additional contact information
Safdar Ullah Khan: Bond University, Queensland, Australia.
No 29, SBP Working Paper Series from State Bank of Pakistan, Research Department
This study investigates the effects of political instability on inflation in Pakistan. Applying the Generalized Method of Moments and using data from 1951-2007, we examine this link in two different models. The results of the ‘monetary’ model suggest that the effects of monetary determinants are rather marginal and that they depend upon the political environment of Pakistan. The ‘nonmonetary’ model’s findings explicitly establish a positive association between measures of political instability and inflation. This is further confirmed on analyses based on interactive dummies that reveal political instability significantly leading to high (above average) inflation. Length: 24 pages
Keywords: Political instability; inflation; Pakistan (search for similar items in EconPapers)
JEL-codes: E31 E63 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.sbp.org.pk/repec/sbp/wpaper/wp29.pdf First version, 2009 (application/pdf)
Journal Article: Political instability and inflation in Pakistan (2011)
Working Paper: Political Instability and Inflation in Pakistan (2009)
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:29
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 ().