|
|
Article: Estimation of money demand and money supply functions for Pakistan: a simultaneous-equations approach.(MONETARY AND FISCAL POLICY ISSUES)(Report)
- Article from:
- Pakistan Development Review
- Article date:
- December 22, 1986
- Author:
CopyrightCOPYRIGHT 1986 Reproduced with permission of the Publications Division, Pakistan Institute of Development Economies, Islamabad, Pakistan. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
I. INTRODUCTION
The role of monetary sector in determining the level of key macro-economic variables like income, employment and prices is well established in the economics literature. The importance of monetary economics has inspired many economists to undertake research in this field and most of their work on Pakistan relates to empirical estimation of the two key relationships in the monetary sector, namely, demand and supply functions for money.
The stock of money in an economy is determined by the interaction of the forces of demand and supply. But, unfortunately, empirical work in Pakistan pertains to separate estimations of demand and supply ...