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The Long-run Relationship among Money, Income and the Price Level in Pakistan

Journal of Economics and Sustainable Development

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Title The Long-run Relationship among Money, Income and the Price Level in Pakistan
 
Creator Kakar, Mehmood Khan
Kakar, Ali
khan, Wakeel
Waliullah, Waliullah
 
Description This paper explores whether a significant long-run relationship exists between money, price level and GDP in the Pakistani economy. We apply time-series econometric techniques to quarterly data for the Pakistan economy for 1972: I to 2003: IV. An important feature of our analysis is the use of tests for unit roots and ARDL and ECM. ARDL has a numerous advantages over the traditional approaches of causality and Cointegration. Certain characteristics of the Pakistani experience suggest that there is a stable long run relationship. Radical changes in monetary policy have significantly affected the movement of the macroeconomy. We find that a long-run relationship exists between money supply (M1), GDP and the CPI.
 
Publisher The International Institute for Science, Technology and Education (IISTE)
 
Date 2011-08-26
 
Type info:eu-repo/semantics/article
Peer-reviewed Article
info:eu-repo/semantics/publishedVersion
 
Format application/pdf
 
Identifier http://iiste.org/Journals/index.php/JEDS/article/view/243
 
Source Journal of Economics and Sustainable Development; Vol 2, No 3 (2011); 117-128
 
Language eng
 
Relation http://iiste.org/Journals/index.php/JEDS/article/view/243/128
 
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