The Role of Money in Explaining Business Cycles for a Developing Economy: The Case of Pakistan
AbstractIn this paper, we establish the empirical linkages between nominal and real variables of Pakistani economy using both annual and quarterly data. The focus of our empirical analysis has been limited to the post financial liberalization period starting in early 1990s. Furthermore, this paper theoretically evaluates the role of money and monetary policy in propagating business cycle fluctuations of Pakistani economy using different ways of introducing the role of money via money in utility (MIU) and cash in advance constraint (CIA) as well as with different formulation of monetary policy either through a money growth rule or Taylor type interest rate rule.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 55262.
Date of creation: 11 Apr 2014
Date of revision: 11 Apr 2014
General Equilibrium Models; Modeling and Simulations; Monetary Policy;
Find related papers by JEL classification:
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
- 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-2014-04-18 (All new papers)
- NEP-MAC-2014-04-18 (Macroeconomics)
- NEP-MON-2014-04-18 (Monetary Economics)
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