This paper develops an open economy dynamic stochastic general equilibrium (DSGE) model based on New-Keynesian micro-foundations. Alongside standard features of emerging economies, such as a combination of producer and local currency pricing for exporters, foreign capital inflow in terms of...

This paper presents a theoretical model with micro-foundations that captures some important features of Pakistan‘s economy which have emerged in sixty-four years of its history. A comparison of Pakistan‘s economic performance during different regimes shows that macroeconomic fundamentals...

This paper develops an open economy dynamic stochastic general equilibrium (DSGE) model based on New-Keynesian micro-foundations. Alongside standard features of emerging economies, such as a combination of producer and local currency pricing for exporters, foreign capital inflow in terms of...

Institutional quality plays an important role in promoting economic development of a nation. Foreign capital can work efficiently and its productivity will be high if the quality of institution is good. This study attempts to investigate empirically the impact of external debt and foreign aid on...

It is well known in standard economic literature that nominal frictions have significant impact on the transmission mechanism of monetary policy. This paper considers a closed economy version of DSGE model with various nominal frictions vis-à-vis monetary-cumfiscal blocks to seek the basic...

There is a worldwide contemporary debate about the role of the hidden economy in achieving the goal of sustained and inclusive economic growth and development, especially in the context of its spillover effects on the formal economy. For this purpose, policy-makers and academicians have made...