Economic Growth Key to Controlling Inflation and Stabilizing Prices in Pakistan
The study looked at how money supply, price levels, and economic growth are connected in Pakistan from 1980 to 2016. They found that there is a long-term relationship between money supply and economic growth, but not between price levels and income. Income affects money supply in the short term, and money supply affects inflation, supporting the idea that economic growth is important for stabilizing money supply and prices in a country.