This paper examines the existence and stability of both the long- and short-run demand for narrow and broad money …). The study reveals the existence of a systematic long-run relationship among real money balances, real income, interest … rate and exchange rate. Results from testing the hypothesis of a unitary price elasticity confirm that only the broad money …

A stable and predictable demand for money function is a pre-requisite for the use of targets for monetary aggregates as … themselves in the estimation of such money functions, empirical interest has been renewed over the last decade driven by the … belief that a stable long-run money demand relationship continues to exist. This revival of activity in this area was aided …

can be analyzed as a credibility problem if the government has only one policy instrument, money supply carried out by … solve the credibility problem. They involve printing money or nominal debt and either (1) cutting taxes, (2) buying real … these policy instruments. It commits to higher money supply in the future so that the private sector expects inflation …

money, surveying the ongoing theoretical and empirical debate. The key conclusion is that an exclusive focus on non … policy decisions by providing a clearer narrative of the relative role of money in the interaction with other economic and …

Pakistan. A stylized inflation model is specified that includes standard monetary variables (money supply, credit to the …

real money balances, the approach followed here focuses on the relationship between nominal variables and inflation. The … at the end of the sample. The estimates confirm the strong relationship between money and inflation when M1 is used, with …