Inflation in Pakistan driven by money supply, GDP, and government spending.
The article examines what causes inflation in Pakistan by looking at factors like money supply, GDP, imports, government spending, and revenue. They used data from 1972 to 2010 and found that in the long run, inflation is mainly influenced by money supply, GDP, imports, and government spending. However, government revenue actually reduces inflation. In the short term, last year's inflation and government revenue from two years ago directly impact current inflation levels. To keep prices stable, it's important to find the right balance of GDP growth and government spending.