ARTICLE

ASSET PRICE CHANNEL OF MONETARY POLICY IN PAKISTAN

07 Pages : 86-93

http://dx.doi.org/10.31703/ger.2021(VI-IV).07      10.31703/ger.2021(VI-IV).07      Published : Dec 2021

Asset Price Channel of Monetary Policy in Pakistan

    This study has used Vector Auto-Regressive (VAR)model approach to analyze the Asset Price Channel of Monetary Transmission (APCMT) regarding Pakistan. Study use the date period of 34 years from 1980 to 2 14. Major findings of the study are; stock prices have bi-directional causality with industrial price index and money rte. Granger causality test was employed to check multi-directional causality between stock prices and industrial product index, money supply, money market rate,and consumer price index, whereas stock prices do not have significant causality with money supply and consumer price in ex.Descriptive statistics are used to check the normality of the data,and mean, median, standard deviation, Jerq-Berra, maximum and minimum values were calculated through descriptive statistics approach. For policy designing, this study has some important implications, and it gives emphasis on financial prices instead of credit to achieve the objective of the monetary policy of Pakistan.

    Asset Price Channel, Monetary Transmission, Money Supply, VAR Model
    (1) Saleem Shah
    PhD Scholar, Department of Economics, Clark University, MA, USA.
    (2) Irfan Hussain Khan
    PhD Scholar, Department of Economics, Government College University, Faisalabad, Punjab, Pakistan
    (3) Alamgir Khan
    Lecturer, Department of Economics, Hazara University, Mansehra, KP, Pakistan.
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Cite this article

    CHICAGO : Shah, Saleem, Irfan Hussain Khan, and Alamgir Khan. 2021. "Asset Price Channel of Monetary Policy in Pakistan." Global Economics Review, VI (IV): 86-93 doi: 10.31703/ger.2021(VI-IV).07
    HARVARD : SHAH, S., KHAN, I. H. & KHAN, A. 2021. Asset Price Channel of Monetary Policy in Pakistan. Global Economics Review, VI, 86-93.
    MHRA : Shah, Saleem, Irfan Hussain Khan, and Alamgir Khan. 2021. "Asset Price Channel of Monetary Policy in Pakistan." Global Economics Review, VI: 86-93
    MLA : Shah, Saleem, Irfan Hussain Khan, and Alamgir Khan. "Asset Price Channel of Monetary Policy in Pakistan." Global Economics Review, VI.IV (2021): 86-93 Print.
    OXFORD : Shah, Saleem, Khan, Irfan Hussain, and Khan, Alamgir (2021), "Asset Price Channel of Monetary Policy in Pakistan", Global Economics Review, VI (IV), 86-93