Pakistan: Breaking out of stagflation into sustained growth
This paper proposes that the underlying cause of the macroeconomic problems facing Pakistan today are a series of supply shocks which have constrained output growth. It is argued that while the current debate has solely focused on government expenditures and revenues, it is critical to also address the acute energy shortages which is constraining supply. The paper goes on to present four recommendations for breaking out of the present stagflation: (i) prudent macroeconomic management, (ii) reviving the role of the government in development while restoring fiscal balance, (iii) loosening monetary policy in order to spur the private sector, and (iv) improving social safety nets.
|Date of creation:||2011|
|Date of revision:|
|Publication status:||Published in The Lahore Journal of Economics 16 (2011): pp. 13-30|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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- Brunner, Karl & Cukierman, Alex & Meltzer, Allan H., 1980. "Stagflation, persistent unemployment and the permanence of economic shocks," Journal of Monetary Economics, Elsevier, vol. 6(4), pages 467-492, October.
- Muhammad Arshad Khan & Muhammad Abdul Qayyum, 2007.
"Trade, Financial and Growth Nexus in Pakistan,"
Economic Analysis Working Papers (2002-2010). Atlantic Review of Economics (2011-2016),
Colexio de Economistas de A Coruña, Spain and Fundación Una Galicia Moderna, vol. 6, pages 1-24, December.
- repec:pid:wpaper:2010:2 is not listed on IDEAS
- repec:pid:monogr:2010:2 is not listed on IDEAS
- Amjad, Rashid & Din, Musleh ud, 2010. "Economic and social impact of global financial crisis: implications for macroeconomic and development policies in South Asia," MPRA Paper 38150, University Library of Munich, Germany.
- Robert B. Barsky & Lutz Kilian, 2002.
"Do We Really Know that Oil Caused the Great Stagflation? A Monetary Alternative,"
in: NBER Macroeconomics Annual 2001, Volume 16, pages 137-198
National Bureau of Economic Research, Inc.
- Robert B. Barsky & Lutz Kilian, 2001. "Do We Really Know that Oil Caused the Great Stagflation? A Monetary Alternative," NBER Working Papers 8389, National Bureau of Economic Research, Inc.
- Qayyum, Abdul & Khan, Sajawal & Khawaja, Idrees, 2005. "Interest Rate Pass-through in Pakistan: Evidence from Transfer Function Approach," MPRA Paper 2056, University Library of Munich, Germany, revised 2005.
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