Economics, Econometrics and Finance
4 years ago

New macroeconometric model predicts Pakistan's monetary policy impact with precision.

MPRA Paper
A small-size macroeconometric model for Pakistan economy
Muhamad Nadim Hanif, Zulfiqar Hyder, Muhammad Amin Khan Lodhi, Mahmood ul Hassan Khan, Irem Batool

Paper Summary

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The article presents a small macroeconometric model for Pakistan to predict the effects of monetary policy. The model consists of 17 equations, with 11 predicting behaviors and the rest defining relationships. The researchers used OLS method with data from FY73-FY06 to estimate the equations. The results show the impact of shocks on different variables through policy simulations.