Volume 5, Issue 4 (April 2018), Pages: 6-13
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Original Research Paper
Title: Stabilization policies and the domestic output response: Evidence from Pakistan
Author(s): Muhammad Afzal 1, Dilshad Ahmad 2, *
Affiliation(s):
1Department of Economics, Preston University, Islamabad, Pakistan
2Department of Management Sciences COMSATS, Vehari, Pakistan
https://doi.org/10.21833/ijaas.2018.04.002
Full Text - PDF XML
Abstract:
IS-LM and GARCH models have been used to see the impact of important macroeconomic variables on the domestic output of Pakistan for the periods 1960 – 2012 and 1980 -2010. Money supply (M1 and M2), inflation and US income have a noteworthy connection with the output. The budget deficit and terms-of-trade have a negative impact on output. Immoderate use of money supply and inflation can have devastating repercussions for the overall health of the economy. A sound fiscal policy is essential for realizing the growth potential. Terms-of-trade will improve with exports diversification and low inflation.
© 2018 The Authors. Published by IASE.
This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
Keywords: IS-LM, GARCH, Pakistan
Article History: Received 26 October 2017, Received in revised form 20 January 2018, Accepted 20 January 2018
Digital Object Identifier:
https://doi.org/10.21833/ijaas.2018.04.002
Citation:
Afzal M and Ahmad D (2018). Stabilization policies and the domestic output response: Evidence from Pakistan. International Journal of Advanced and Applied Sciences, 5(4): 6-13
Permanent Link:
http://www.science-gate.com/IJAAS/2018/V5I4/Afzal.html
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