Economics, Econometrics and Finance
4 years ago

Inflation and Interest Rates Drive Money Demand in Pakistan

MPRA Paper
Error Correction Model of the Demand for Money in Pakistan
Abdul Qayyum

Paper Summary

Related papers

Economics, Econometrics and Finance
8 years ago

Economic reform in China reshapes money demand, income key factor.

Macroeconomic Analysis
Infrastructure Impact
Economics, Econometrics and Finance
4 years ago

Real interest rates negatively impact money demand in Pakistan, study finds.

Macroeconomic Analysis
Islamic Banking
Macroeconomic Trends
1 view
Economics, Econometrics and Finance
4 years ago

Exchange rate volatility in Bangladesh negatively impacts money demand function.

Environmental Impact
Rebound Effect
Macroeconomic Analysis
1 view

The article studied how money demand in Pakistan is influenced by factors like income, inflation rate, and bond rate. In the long term, money demand depends on these factors. In the short term, inflation rate and deposit interest rate play a significant role in determining money demand. The dynamic model used in the study remained stable throughout the research period.