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Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/43423
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Full metadata record
| DC Field | | Value | | Language |
| dc.contributor.author | | Khan, Muhammad Arshad | | en_US |
| dc.date.accessioned | | 2010-06-17 | | en_US |
| dc.date.accessioned | | 2010-12-16T15:55:24Z | | - |
| dc.date.available | | 2010-12-16T15:55:24Z | | - |
| dc.date.issued | | 2010 | | en_US |
| dc.identifier.uri | | http://hdl.handle.net/10419/43423 | | - |
| dc.description.abstract | | This paper tests the constancy and stationarity of mechanic version of the money multiplier model for Pakistan using monthly data over the period 1972M1-2009M2. We split the data into pre-liberalization (1972M1-1990M12) and post-liberalization (1991M1-2009M2) periods to examine the impact of financial sector reforms. We first examine the constancy and stationarity of the money multiplier and the results suggest the money multiplier remains non-stationary for the entire sample period and sub-periods. We then tested cointegration between money supply and monetary base and find the evidence of cointegration between two variables for the entire period and two sub-periods. The coefficient restrictions are satisfied only for the post-liberalization period. Two-way long-run causality between money supply and monetary base is found for the entire period and post-liberalization. For the post-liberalization period the evidence of short-run causality running from monetary base to money supply is also identified. On the whole, the results suggest that money multiplier model can serve as framework for conducting short-run monetary policy in Pakistan. However, the monetary authority may consider the co-movements between money supply and reserve money at the time of conducting monetary policy. | | en_US |
| dc.language.iso | | eng | | en_US |
| dc.publisher | | | | en_US |
| dc.relation.ispartofseries | | Economic analysis working papers 2010,2 | | en_US |
| dc.subject.jel | | E51 | | en_US |
| dc.subject.jel | | E52 | | en_US |
| dc.subject.jel | | E58 | | en_US |
| dc.subject.ddc | | 330 | | en_US |
| dc.subject.keyword | | Money Multiplier | | en_US |
| dc.subject.keyword | | Reserve Money | | en_US |
| dc.subject.keyword | | Monetary Policy | | en_US |
| dc.subject.stw | | Geldschöpfung | | en_US |
| dc.subject.stw | | Pakistan | | en_US |
| dc.title | | Testing of money multiplier model for Pakistan: Does monetary base carry any information? | | en_US |
| dc.type | | Working Paper | | en_US |
| dc.identifier.ppn | | 629463646 | | en_US |
| dc.rights | | http://www.econstor.eu/dspace/Nutzungsbedingungen | | en_US |
| Appears in Collections: | | Economic Analysis Working Papers: EAWP, Economists Association of La Coruña
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