Does Monetary Policy Play Effective Role in Controlling Inflation in Pakistan
AbstractThis paper presented the salient features of current Monetary Policy and its effectiveness to control inflation in Pakistan. The monetary authority was successful in controlling inflation when it successfully controlled the money supply target. The calculation of money supply target needs to be improved to get appropriate target level of M2. It is also concluded that in the recent years SBP failed to control money supply and hence rate of inflation within the set target level. There seems to be a lack of coordination between Fiscal and Monetary Authorities. The understanding of issues regarding monetary policy transmission mechanism, effectiveness of different channels, lag structure of monetary policy changes, magnitude of pass-through of policy changes to inflation and output and nature of relationship amongst, instruments and goals of monetary policy (inflation and output) seems to be lacking and need fresh investigation.
Download InfoIf 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.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 13080.
Date of creation: 2008
Date of revision:
Monetary Policy; Pakistan; Money Supply; Inflation;
Find related papers by JEL classification:
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-02-07 (All new papers)
- NEP-CWA-2009-02-07 (Central & Western Asia)
- NEP-MAC-2009-02-07 (Macroeconomics)
- NEP-MON-2009-02-07 (Monetary Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stanley Fischer & Franco Modigliani, 1978.
"Towards An Understanding of the Real Effects and Costs of Inflation,"
NBER Working Papers
0303, National Bureau of Economic Research, Inc.
- Stanley Fischer & Franco Modigliani, 1978. "Towards an understanding of the real effects and costs of inflation," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 114(4), pages 810-833, December.
- Arshad Khan, Muhammad & Qayyum, Abdul, 2007.
"Trade,Financial and Growth Nexus in Pakistan,"
6523, University Library of Munich, Germany.
- Muhammad Arshad Khan & Muhammad Abdul Qayyum, 2007. "Trade, Financial and Growth Nexus in Pakistan," Economic Analysis Working Papers (2002-2010). Atlantic Review of Economics (2011-2013), Colexio de Economistas de A Coruña, Spain and Fundación Una Galicia Moderna, Colexio de Economistas de A Coruña, Spain and Fundación Una Galicia Moderna, vol. 6, pages 1-24, December.
- M. Idrees Khawaja & Musleh-ud Din, 2006. "Banking: Interest Spread, Inelastic Deposit Supply, and Mergers," The Pakistan Development Review, Pakistan Institute of Development Economics, Pakistan Institute of Development Economics, vol. 45(4), pages 1055-1070.
- repec:fip:fedgsq:y:2005:i:feb11 is not listed on IDEAS
- Ashfaque H. Khan & Mohammad Ali Qasim, 1996. "Inflation in Pakistan Revisited," The Pakistan Development Review, Pakistan Institute of Development Economics, Pakistan Institute of Development Economics, vol. 35(4), pages 747-759.
- Cecchetti, Stephen G, 2000. "Making Monetary Policy: Objectives and Rules," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 16(4), pages 43-59, Winter.
- Muhammad Javid & Kashif Munir, 2010.
"The Price Puzzle and Monetary Policy Transmission Mechanism in Pakistan: Structural Vector Autoregressive Approach,"
The Pakistan Development Review, Pakistan Institute of Development Economics,
Pakistan Institute of Development Economics, vol. 49(4), pages 449â460.
- Javid, Muhammad & Munir, Kashif, 2011. "The price puzzle and monetary policy transmission mechanism in Pakistan: Structural vector autoregressive approach," MPRA Paper 30670, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.