Advanced Search
MyIDEAS: Login

Price Hikes, Economic Reforms and Causality in Money, Income and Prices: Evidence from Pakistan

Contents:

Author Info

  • Fazal Husain

    (Pakistan Institute of Development Economics, Islamabad.)

  • Abdul Rasid

    (International Islamic University, Islamabad.)

Abstract

This study extends the analysis of causality by Husain and Rashid (2008) by examining the shift in the variables due to the price hikes in Pakistan in the early 1970s. We investigate the causal relations between real money and real income, between nominal money and nominal income, and between nominal money and prices using the annual data set from 1959-60 to 2003-04. Moreover, we examine the stochastic properties of the variables used in the analysis, and take care of the shifts in the series due to price hikes and liberalisation measures through dummy variables. The results indicate significant shifts in the variables during the sample period. In this context, the shift that occurred due to price hikes in the early 1970s seems to be more important to be incorporated in the analysis. The study finds the active role of money as the leading variable in changing prices without any feedback. In the earlier studies on income the feedback mechanism of money is found missing perhaps because of overlooking the shift in the macro economic variables in the early 1970s.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.pide.org.pk/pdf/PDR/2009/Volume2/155-168.pdf
Download Restriction: no

Bibliographic Info

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

Volume (Year): 48 (2009)
Issue (Month): 2 ()
Pages: 155-168

as in new window
Handle: RePEc:pid:journl:v:48:y:2009:i:2:p:155-168

Contact details of provider:
Postal: P.O.Box 1091, Islamabad-44000
Phone: (92)(51)9248051
Fax: (92)(51)9248065
Email:
Web page: http://www.pide.org.pk
More information through EDIRC

Related research

Keywords: Money; Income; Prices; Price Hikes; Causal Relations; Pakistan;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:48:y:2009:i:2:p:155-168. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Khurram Iqbal).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.