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Internationalization Of Relationship Between Inflation And Money Supply Policies: An Empirical Study Of Pakistan

Author

Listed:
  • RABIA SAGHIR

    (Assistant Professor, Department of Economics & Finance, Foundation University Islamabad, Pakistan)

  • SAIQA SADDIQA QURESHI

    (Assistant Professor, Fatima Jinnah Women University Rawalpindi, Pakistan)

  • HINA HAYAT

    (Lecturer, Department of Management Sciences, Foundation University Islamabad, Pakistan)

Abstract

This study finds out the determinants of inflation by using cointegration and error corrections techniques, respectively. Money supply, real GDP, and foreign inflation significantly and positively impact inflation. This study recommends that state bank is responsible for maintaining a stable inflation level by controlling the money supply level. Similarly, state banks should provide domestic credit for capital formation goods to enhance economic growth.

Suggested Citation

  • Rabia Saghir & Saiqa Saddiqa Qureshi & Hina Hayat, 2022. "Internationalization Of Relationship Between Inflation And Money Supply Policies: An Empirical Study Of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(1), pages 234-239.
    • Handle: RePEc:rfh:bbejor:v:11:y:2022:i:1:p:234-239
    DOI: https://doi.org/10.61506/
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    References listed on IDEAS

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    1. Rabia Saghir & Saiqa Saddiqa Qureshi & Hina Hayat, 2022. "Internationalization Of Relationship Between Inflation And Money Supply Policies: An Empirical Study Of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(1), pages 234-239.

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    Keywords

    Inflation; ; Money Supply; Real GDP;
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