Khan, Safdar Ullah and Saqib, Omar Farooq (2008): Political Instability and Inflation in Pakistan.
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This study investigates the effects of political instability on inflation in Pakistan. Applying the Generalized Method of Moments and using data from 1951-2007, we examine this link in two different models. The results of the ‘monetary’ model suggest that the effects of monetary determinants are rather marginal and that they depend upon the political environment of Pakistan. The ‘nonmonetary’ model’s findings explicitly establish a positive association between measures of political instability and inflation. This is further confirmed on analyses based on interactive dummies that reveal political instability significantly leading to high (above average) inflation.
|Item Type:||MPRA Paper|
|Original Title:||Political Instability and Inflation in Pakistan|
|Keywords:||political instability, inflation, Pakistan|
|Subjects:||E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level ; Inflation ; Deflation
E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E63 - Comparative or Joint Analysis of Fiscal and Monetary Policy ; Stabilization ; Treasury Policy
|Depositing User:||Safdar Ullah Khan|
|Date Deposited:||29. Jan 2009 07:01|
|Last Modified:||11. Feb 2013 17:06|
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