In this study an attempt has been made to develop and estimate the domestic credit policy reaction function to analyse the monetary implications of interventions and sterilisation policy in Pakistan using quarterly data ranging from 1982 Q3 through 2001 Q2. By employing Johansen multivariate...

In this study we have tested the validity of purchasing power parity hypothesis and exchange rate misalignment for Pakistan over the period 1982Q2-2002Q4. From the empirical analysis we can say that nominal exchange rate is cointegrated with WPI ratio. The cointegration coefficient between...

This paper has examined the empirical relationship between financial development and economic growth in Pakistan over the period 1971–2004. The results show that, in the long run financial depth and real interest exerted positive impact on economic growth. The share of investment is although...