Transmission Lags of Monetary Policy: Probing into Pakistan's Untamed Inflation
نویسندگان
چکیده
Monetary policy has been frequently used by many developing countries including Pakistan to curb inflation and smoothen macroeconomic fluctuations. In the near past, it observed that monetary tightening futile in curbing economies especially after COVID-19. There is always a time lag before money supply affects price level or other variables. This study focuses on transmission mechanism of using monthly data for period 2014:M01 2022:M05. After checking stationarity series, distributive model estimated least square method. It found there exists sluggishness effectiveness 4 5 months exhibits its influence inflation. also noticeable structure changed over Pakistan.
منابع مشابه
Output Composition of Monetary Policy Transmission
This paper aims to investigate the role of each aggregate spending component in the monetary policy transmission in Indonesia. It assesses the relative strength of the role of each spending component in the monetary policy transmission. In so doing, this study employs the contribution analysis, which is calculated based on the cumulative impulse response of each component of GDP to a monetary p...
متن کاملMonetary Policy and Inflation Targeting
In the 1990s, several countries shifted to a new monetary policy regime: an announced quantitative inflation target. The reason for this shift was the unsatisfactory performance under previous regimes. New Zealand, Canada, Australia, and Spain all introduced inflation targets under persistently high inflation; the United Kingdom, Sweden, and Finland did so after having abandoned fixed exchange ...
متن کاملMonetary Policy and Inflation Targeting
On 21–22 July 1997, the Bank convened a conference entitled, 'Monetary Policy and Inflation Targeting'. The following excer pt is the introductory chapter of the conference volume. Medium-term price stability is widely accepted as the appropriate ultimate goal for monetary policy. This reflects two ideas. The first is that high rates of inflation distort decision-making, ultimately leading to s...
متن کاملCore inflation and monetary policy
What are the implications of targeting different measures of inflation? We extend a basic theoretical framework of optimal monetary policy under inflation targeting to include several components of CPI inflation, and analyze the implications of using different measures of inflation as target variable— core inflation, CPI excluding interest rates, and headline CPI inflation. Our main results are...
متن کاملMonetary Policy in Iran: The Challenge of Reducing Inflation
The conduct of monetary policy in an oil economy with a managed floating exchange rate regime can be challenging in an environment of fiscal dominance and incomplete transition to a market economy. The Five-Year Development Plans provide a natural benchmark against which to assess monetary policy performance in Iran. Price stability has proved elusive, with liquidity growth targets constan...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: iRASD journal of economics
سال: 2022
ISSN: ['2709-6742', '2709-6734']
DOI: https://doi.org/10.52131/joe.2022.0402.0082