The monetary transmission mechanism in Pakistan: a sectoral analysis
AbstractThe present paper takes a first step in investigating the monetary transmission mechanism in Pakistan at a sectoral level. Using quarterly data spanning from 1973:1 to 2003:4, we examine whether monetary policy shocks have different sectoral effects. Taking note of structural transformation of the economy and the monetary and financial reforms during 1990s, we also assess whether the reform process has notable impact on the monetary transmission mechanism. We find evidence supporting sector-specific variation in the real effects of monetary policy. Our results also suggest significant changes in the transmission of monetary shock to real sector of the economy during post-reform period.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 2719.
Date of creation: Sep 2006
Date of revision: 13 Apr 2007
Monetary transmission mechanism; VAR; Pakistan; Sectoral analysis;
Find related papers by JEL classification:
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
- 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-2007-05-19 (All new papers)
- NEP-CWA-2007-05-19 (Central & Western Asia)
- NEP-MAC-2007-05-19 (Macroeconomics)
- NEP-MON-2007-05-19 (Monetary Economics)
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