balance sheet channel in monetary transmission mechanism in Pakistan. By classifying firms as SME and large, this paper finds … a strong evidence for the existence of net worth channel in Pakistan. [SBP WP No. 49]. URL …

takes a lag of 5 months. The transmission of monetary policy shock is faster in case of prices as compared to output in … existence of price puzzle and liquidity puzzle in Pakistan while FAVAR model did not provide any evidence of puzzles. Interest … rate negatively influences prices, hence interest rate is a good instrument for controlling inflation in Pakistan but it …

This paper examines the impact of a monetary policy shock on output, prices, and the nominal effective exchange rate … main results suggest that an exogenous increase in the short-term interest rate tends to be followed by a decline in prices … and appreciation in the nominal exchange rate, but has insignificant impact on output. Moreover, the paper finds that …

increase in inflation. The model explains the joint dynamics of output, inflation, real wages, and interest rates, and is …

Empirical evidence on the effect of defense spending on US output is at best mixed. Against this backdrop, this paper … assesses the impact of a positive defense spending shock on the growth rate of real GNP using a Factor Augmented Vector … Autoregressive (FAVAR) model estimated with 116 variables spanning the quarterly period of 1976:01 to 2005:02. Overall, the results …

assesses the impact of a positive defense spending shock on the growth rate of real GNP using a FAVAR model estimated with 116 … the literature to analyze the effect of defense spending on output. Finally, given that the FAVAR model was found …Empirical evidence on the effect of defense spending on US output is at best mixed. Against this backdrop, this paper …