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The monetarist hypothesis of inflation in Pakistan – a critique

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  • Muhammad Azam
  • Salim Rashid

Abstract

The aim of the present study is to analyze empirically the significance of the monetarist explanation of inflation in Pakistan. After testing the data for stationarity, the method of least squares is used. Regression analysis shows slight effects of money supply on inflation while, by contrast, structural factors involving wheat, oil and import prices show more substantial effects. The effective control of inflation requires policy makers to smoothen the supply of food and to moderate import prices.

Suggested Citation

  • Muhammad Azam & Salim Rashid, 2015. "The monetarist hypothesis of inflation in Pakistan – a critique," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 20(4), pages 559-576, October.
    • Handle: RePEc:taf:rjapxx:v:20:y:2015:i:4:p:559-576
    DOI: 10.1080/13547860.2014.970324
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    References listed on IDEAS

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    1. Khan, Abdul Aleem & Ahmed, Qazi Masood & Hyder, Kalim, 2007. "Determinants oF Recent Inflation in Pakistan," MPRA Paper 16254, University Library of Munich, Germany, revised 2007.
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    Cited by:

    1. Mehak Moazam & M. Ali Kemal, 2016. "Inflation in Pakistan: Money or Oil Prices," Working Papers id:11507, eSocialSciences.
    2. Muhammad AZAM KHAN* & Saleem KHAN*, 2018. "INFLATION AND THE ECONOMIC GROWTH: Evidence from Five Asian Countries," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 28(2), pages 235-252.
    3. Lim Chia Yien & Hussin Abdullah & Muhammad Azam, 2017. "Granger Causality Analysis between Inflation, Debt and Exchange Rate: Evidence from Malaysia," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(1), pages 189-196, January.
    4. Elwasila Saeed Elamin Mohamed, 2020. "Velocity of Money Income and Economic Growth in Sudan: Cointegration and Error Correction Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 10(2), pages 87-98.

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