Open AccessThe Controllability of Monetary Aggregates in Pakistan
Author(s) -
Anjum Siddiqui,
Ahmad Waheed
Publication year - 1995
Publication title -
pakistan development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.154
H-Index - 26
ISSN - 0030-9729
DOI - 10.30541/v34i4iipp.659-669
Subject(s) - economics , monetary economics , money supply , monetary policy , endogenous money , broad money , monetary base , monetarism , volatility (finance) , multiplier (economics) , demand deposit , macroeconomics , finance
The introduction of new financial i'nstruments l and theconsequent asset substitutability since the advent of financialderegulation in 1991 has been accompanied by volatility of the moneymultiplier and the monetary aggregates. While money demand studies exist[Khan (1980)], the modelIing of the supply side of money and, ingeneral, the impact of financial innovations on money multipliers andmonetary aggregates has been largely ignored.2 In a recent study,Siddiqui and Waheed (I994a) found that during 1992-93 the narrow moneymultiplier felI and increased sharply, causing instability in MI. It wasalso observed that the broad money multiplier showed similar instabilityduring the same period.