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Impact of monetary policy on gross domestic product (GDP)

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Author Info

  • Hameed, Irfan
  • Ume, Amen

Abstract

This research article focuses on the impact of Monetary Policy on GDP. GDP no doubt is affected by the Monetary Policy of the state. The research papers of various authors have been studied in this regard to prove the Hypothesis and after in depth analysis by applying Regression Analysis technique it has been observed that the relationship between the two exists. The data of past 30 years of Pakistan has been used for driving the conclusion. The study proved that the interest rate has minor relationship with GDP but the Growth in Money Supply greatly affects the GDP of an economy, obviously various unknown factors also affects the GDP. Growth in Money Supply has a huge impact on GDP. The Research study can further be used for developmental projects for the Growth of Economy, Quality improvements, Household production, the underground conomy, Health and life expectancy, the environment, Political immunity and ethnic justice.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 35562.

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Date of creation: 2011
Date of revision:
Publication status: Published in Interdisciplinary Journal of Contemporary Research in Business 1.3(2011): pp. 1348-1361
Handle: RePEc:pra:mprapa:35562

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Keywords: MONETARY POLICY; GROSS DOMESTIC PRODUCT; INFLATION; MONEY SUPPLY;

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Cited by:
  1. Soomro, Yasir & Hameed, Irfan & Butt, Atif & Shakoor, Rehan, 2012. "Significance of Internet Marketing in Promoting Consumer Goods in Subcontinent," MPRA Paper 56995, University Library of Munich, Germany, revised 01 Jun 2012.

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