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The Impact of Inflation on Financial Development

Author

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  • Haroon Khan

    (King AbdulAziz University, Jeddah, Kingdom of Saudi Arabia)

Abstract

This paper scrutinizes the impact of inflation on financial development in the case of Pakistan for the period of 1991-2011. In order to do so, Regression and Correlation methods have been applied. Experimental findings expose that high trends of inflation delay the performance of financial markets. GDP per capita promotes the development of financial sector through its causing channels. Three indicators namely money supply, total level of deposits, BCPS (bank credit to private sector) represent the financial development in Pakistan. There is a negative relationship between inflation and financial development.

Suggested Citation

  • Haroon Khan, 2015. "The Impact of Inflation on Financial Development," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 1(4), pages 42-48, October.
    • Handle: RePEc:mgs:ijoied:v:1:y:2015:i:4:p:42-48
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    References listed on IDEAS

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    Cited by:

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    2. Ismail, Yusra & Masih, Mansur, 2019. "Is the relationship between inflation and financial development symmetric or asymmetric? new evidence from Sudan based on NARDL," MPRA Paper 94694, University Library of Munich, Germany.
    3. Hussain, Muzzammil & Bashir, Adnan & Wang, Chen & Wang, Yiwen, 2023. "World uncertainty, natural resources, consumer prices, and financial development in high-income countries," Resources Policy, Elsevier, vol. 81(C).
    4. Zheng, ShiYong & Liu, Hua & Hafeez, Muhammad & Wang, Xiaofeng & Fahad, Shah & Yue, Xiao-Guang, 2023. "Testing the resource curse hypothesis: The dynamic roles of institutional quality, inflation and growth for Dragon," Resources Policy, Elsevier, vol. 85(PA).
    5. Emilia Anuta Corovei & Adela Socol, 2019. "The Macroeconomic Drivers for Household Deposits Growth in the Eurozone," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 5(3), pages 144-151, September.

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    More about this item

    Keywords

    Inflation; Financial Development; macroeconomic factors; Pakistan;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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