International journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN:2313-626X

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 Volume 5, Issue 4 (April 2018), Pages: 6-13

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 Original Research Paper

 Title: Stabilization policies and the domestic output response: Evidence from Pakistan

 Author(s): Muhammad Afzal 1, Dilshad Ahmad 2, *

 Affiliation(s):

 1Department of Economics, Preston University, Islamabad, Pakistan
 2Department of Management Sciences COMSATS, Vehari, Pakistan

 https://doi.org/10.21833/ijaas.2018.04.002

 Full Text - PDF          XML

 Abstract:

IS-LM and GARCH models have been used to see the impact of important macroeconomic variables on the domestic output of Pakistan for the periods 1960 – 2012 and 1980 -2010. Money supply (M1 and M2), inflation and US income have a noteworthy connection with the output. The budget deficit and terms-of-trade have a negative impact on output. Immoderate use of money supply and inflation can have devastating repercussions for the overall health of the economy. A sound fiscal policy is essential for realizing the growth potential. Terms-of-trade will improve with exports diversification and low inflation. 

 © 2018 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords: IS-LM, GARCH, Pakistan

 Article History: Received 26 October 2017, Received in revised form 20 January 2018, Accepted 20 January 2018

 Digital Object Identifier: 

 https://doi.org/10.21833/ijaas.2018.04.002

 Citation:

 Afzal M and Ahmad D (2018). Stabilization policies and the domestic output response: Evidence from Pakistan. International Journal of Advanced and Applied Sciences, 5(4): 6-13

 Permanent Link:

 http://www.science-gate.com/IJAAS/2018/V5I4/Afzal.html

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