期刊名称：International Journal of Economics and Financial Issues
电子版ISSN：2146-4138
出版年度：2015
卷号：5
期号：3
页码：709-715
语种：English
出版社：EconJournals
摘要：State Bank of Pakistan (SBP) has mandate of price stability along with output growth. However, inflation deviation from the announced target is common. Employing impulse response functions and variance decomposition, over the period, 1991Q1-2007Q4,this paper attempts to explain why inflation targets have been missed in Pakistan. The results are indicative that inflation gap responds to shocks in government credit from State Bank, world crude oil price, real effective exchange rate and money supply. The response is more prominent in case of government credit from central bank. On the other hand, variance decomposition analysis suggests that most of the variation in deviation from the target is explained by its own lagged values followed by variation in government loan from central bank. Keywords: State Bank of Pakistan; Inflation; Real Effective Exchange Rate; Impulse Response; Variance Decomposition JEL Classifications: E0; E23; E31
其他摘要：State Bank of Pakistan (SBP) has mandate of price stability along with output growth. However, inflation deviation from the announced target is common. Employing impulse response functions and variance decomposition, over the period, 1991Q1-2007Q4,this paper attempts to explain why inflation targets have been missed in Pakistan. The results are indicative that inflation gap responds to shocks in government credit from State Bank, world crude oil price, real effective exchange rate and money supply. The response is more prominent in case of government credit from central bank. On the other hand, variance decomposition analysis suggests that most of the variation in deviation from the target is explained by its own lagged values followed by variation in government loan from central bank. Keywords: State Bank of Pakistan; Inflation; Real Effective Exchange Rate; Impulse Response; Variance Decomposition JEL Classifications: E0; E23; E31
