Analysis Of Structural Shifts And Inflation In Pakistan
The structural shifts and their impact on inflation in Pakistan were estimated in the research paper. The macroeconomic variables money supplies, income velocity of circulation, real income of the economy for the period of 1973 to 2007 and two structural shifts 1983 and 1998 in Pakistan were included as the main variables of the present study. The time series properties of data were checked through ADF test. The included variables were stationary at level. The relationship among these variables was estimated by OLS technique because all the variables were stationary at level. Impacts of structural breaks on inflation in Pakistan were observed by applying Chow Test. It was concluded that the structural shifts in 1983 and 1998 have impact upon the inflation in Pakistan.
Volume (Year): 7 (2012)
Issue (Month): 3 (December)
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- David Romer, 1991.
"Openness and inflation: theory and evidence,"
Federal Reserve Bank of San Francisco, issue Nov.
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