Capital Flows and Money Supply: The Degree of Sterilisation in Pakistan
AbstractIn this study an attempt has been made to develop and estimate the domestic credit policy reaction function to analyse the monetary implications of interventions and sterilisation policy in Pakistan using quarterly data ranging from 1982 Q3 through 2001 Q2. By employing Johansen multivariate cointegration technique, this paper has considered the degree of sterilisation that the Pakistan has used in controlling capital flows. The evidence suggests that Pakistan sterilises around 72 percent of international reserve inflows in the long-run while 88 percent in the short-run during the period of study.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 2150.
Date of creation: 2003
Date of revision: 2003
Publication status: Published in The Pakistan Development Review 4.42(2003): pp. 975-985
Money Supply; sterlization; capital inflow; dometic credit; unit root; cointegration;
Other versions of this item:
- Abdul Qayyum & Muhammad Arshad Khan, 2003. "Capital Flows and Money Supply: The Degree of Sterilisation in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 975-985.
- E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
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