Inflation in Pakistan: Money or Oil Prices
Published By: PIDE on eSS | Published Date: September , 2016The study attempted to investigate the determinants of inflation in case of
Pakistan and to check the validity of monetarist stance that inflation is always
and everywhere a monetary phenomenon by investigating the impact of oil
prices, M2 and GDP on prices. The descriptive analysis shows there is strong
correlation between money supply and prices and also between GDP and prices
while the correlation between oil prices and CPI is (0.60) less as compare to
other variables. The important finding of the paper is that oil prices have short
run impact on inflation whereas money supply is the long run determinant of
inflation in case of Pakistan. [PIDE Working Papers
No. 144].
Author(s): Mehak Moazam, M. Ali Kemal | Posted on: Dec 07, 2016 | Views() | Download (410)