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Some Econometric Evidence on the Relative Importance of Monetary and Fiscal Policy in Pakistan

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Author Info

  • NAJAM us SAQIB

    (Pakistan Institute of Development Economics, Islamabad.)

  • ATTIYA YASMIN

    (Pakistan Institute of Development Economics, Islamabad.)

Abstract

Economists agree that both monetary and fiscal policies can influence the pace of aggregate economic activity. However, their relative importance still remains a widely debated and complicated issue. Given the mushroom growth of different types of economic models, it seems almost impossible to decide their relative importance, at a purely theoretical level. So in this paper, we have tried to deal with this issue empirically in the context of Pakistan. In surveying the literature, we can find a number of empirical studies on this issue, but most of them are for the developed countries. Similar studies for the developing countries are rare. We have been able to find only two such studies for Pakistan, one by Hussain (1982) and the other by Masood and Ahmad (1980).

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Bibliographic Info

Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 26 (1987)
Issue (Month): 4 ()
Pages: 541-551

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Handle: RePEc:pid:journl:v:26:y:1987:i:4:p:541-551

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Cited by:
  1. Md. Habibur Rahman, 2009. "Relative Effectiveness of Monetary and Fiscal Policies on Output Growth in Bangladesh: A VAR Approach," Working Papers id:2100, eSocialSciences.
  2. M. Aynul Hasan & Qazi Masood Ahmed, 1991. "Endogeneity of Monetary Policy Reaction Function: An Experience from Pakistan's Economy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 30(4), pages 931-941.

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