scholarly journals Money Supply, Deficit, and Inflation in Pakistan

1995 ◽  
Vol 34 (4III) ◽  
pp. 945-956 ◽  
Author(s):  
Mohammad Aslam Chaudhary ◽  
Naved Ahmad
Keyword(s):  
Money Supply ◽  
Price Index ◽  
Consumer Price Index ◽  
Policy Implications ◽  
Structural Factors ◽  
The Public ◽  
The Relationship ◽  
Distribution Of Income ◽  
Double Digit

Inflation is a burning issue in Pakistan. It is generally felt that for several years Pakistan has had a double-digit inflation. The public sector has used a mix of policies to control inflation, and it is also held responsible for its creation. The consumer price index (CPI) increased over 11 percent in 1981-82, and over 12 percent in 1990-91. Similarly, sensitive price index (SPI) increased over 15 percent in 1981-82, and over 12 percent in 1990-91. The GDP deflator was also double-digit for several years. Inflation not only affects sectoral allocation and distribution of income but also generates poverty. A prescription might not be appropriate until the roots of the disease are carefully investigated, which is the very reason for carrying out this study. Studies by Hossain (1990) several others concluded that inflation is a monetary phenomenon in Pakistan, while Bilquees (1988) showed that structural factors explained the inflationary process in Pakistan. It is widely disagreed whether money supply is exogenous or endogenous. Vogel (1974), criticising the monetarist approach, argued that further research is needed on the determination of money supply. Given this background, this study is intended to identify the variables leading to inflation; the nature of money supply, endogenous or exogenous, is also analysed. Section 2 of the study provides a brief review of the literature. A model is developed to study the relationship among fiscal deficit, money supply, and inflation. Section 3 contains a description of the empirical results. Section 4 provides the conclusion and policy implications.

scholarly journals Analisis Indeks Harga Konsumen di Indonesia Melalui Pendekatan Kointegrasi

2019 ◽  
Vol 4 (2) ◽  
pp. 110-118
Author(s):  
Muhamad Muin ◽  
Keyword(s):  
Exchange Rate ◽  
Empirical Study ◽  
Money Supply ◽  
Price Index ◽  
Consumer Price Index ◽  
Data Series ◽  
Short Term ◽  
Monthly Data ◽  
The Relationship

This study aims to analyze the relationship between the rupiah exchange rate (RER) and the money supply (M1) on the outgrowth of the consumer price index (CPI) in Indonesia. The data used in this study are monthly data series from January 2005 to January 2019. The results of this empirical study shows that there is a relationship between RER and M1 on CPI in the long term and there is a correction in the short term balance (ECM) which is influenced by M1. All of these variables are significant at α = 5% and partly significant at α = 1%.

scholarly journals The Indian Inflation 2006–2016: An Econometric Investigation

2019 ◽  
Vol 20 (1) ◽  
pp. 46-69 ◽  
Author(s):  
Paramita Mukherjee ◽  
Dipankor Coondoo
Keyword(s):  
Coming Out ◽  
Price Index ◽  
Consumer Price Index ◽  
Wholesale Price ◽  
Policy Implications ◽  
Fuel Price ◽  
Relative Prices ◽  
Wholesale Price Index ◽  
The Relationship

Recently several changes have been adopted in the conduct of monetary policy in India, like tracking CPI (Consumer Price Index), targeting inflation and so on. However, certain curious features of inflation may have some implications on the effectiveness of such measures. This article tries to explore the nature of inflation during the last decade. There are certain views about the nature of Indian inflation from the structuralist perspective. This article contributes to the literature by empirically testing those propositions and coming out with some significant policy implications. The article is based on monthly data from January 2006 to March 2016. By employing econometric techniques like cointegration and vector autoregression (VAR), the article tries to explain the movements of different components of WPI (Wholesale Price Index) and CPI inflation, both core and headline inflation and how they are related to macroeconomic policy variables. The empirical analyses focus on finding out the existence of co-movements among the inflation and macroeconomic variables, explaining the role of components like food and fuel price in driving CPI and WPI. The results have some important policy implications. First, the movements of WPI and CPI and their headline and core counterparts are not explained by same set of variables. Second, food inflation is not explained by agricultural output pointing to the insufficient increase in supply in agriculture. Third, the determinants of CPI headline and core inflation are not same. So, both of them should be tracked while formulating policies. The relationship among the components of inflation point to the possibility of some adjustment in demand from one set of goods to another, implying adjustments in terms of relative prices which needs further exploration. JEL: E31, E52, C32

scholarly journals Unraveling the association between socioeconomic diversity and consumer price index in a tourism country

2021 ◽  
Vol 8 (1) ◽  
Author(s):  
Yan Leng ◽  
Nakash Ali Babwany ◽  
Alex Pentland
Keyword(s):  
High Resolution ◽  
Ethnic Diversity ◽  
Large Scale ◽  
Price Index ◽  
Consumer Price Index ◽  
Modern Society ◽  
Mobile Phone Data ◽  
Diversity Measures ◽  
Macroeconomic Indicators ◽  
The Relationship

AbstractDiversity has tremendous value in modern society. Economic theories suggest that cultural and ethnic diversity may contribute to economic development and prosperity. To date, however, the correspondence between diversity measures and the economic indicators, such as the Consumer Price Index, has not been quantified. This is primarily due to the difficulty in obtaining data on the micro behaviors and macroeconomic indicators. In this paper, we explore the relationship between diversity measures extracted from large-scale and high-resolution mobile phone data, and the CPIs in different sectors in a tourism country. Interestingly, we show that diversity measures associate strongly with the general and sectoral CPIs, using phone records in Andorra. Based on these strong predictive relationships, we construct daily, and spatial maps to monitor CPI measures at a high resolution to complement existing CPI measures from the statistical office. The case study on Andorra used in this study contributes to two growing literature: linking diversity with economic outcomes, and macro-economic monitoring with large-scale data. Future study is required to examine the relationship between the two measures in other countries.

scholarly journals Empirical analysis of the determinants of the IPCA for the period of 2000 to 2011: an approach based on a SVAR model

2017 ◽  
Vol 31 (2) ◽  
Author(s):  
Mateus Boldrine Abrita ◽  
Eliane Cristina De Araújo ◽  
Angelo Rondina Neto
Keyword(s):  
Exchange Rate ◽  
Empirical Analysis ◽  
Autoregressive Model ◽  
Price Index ◽  
Aggregate Demand ◽  
Consumer Price Index ◽  
External Factors ◽  
Level Of Activity ◽  
Svar Model

This study examines empirically the determinants of the Brazilian inflation, measured by the Broad Consumer Price Index (IPCA) and its decomposition, estimating two equations and using an autoregressive model. The database covers the period from January 2000 to December 2011. Five main groups are mentioned as the determinants of inflation: i) Aggregate Demand; ii) Aggregate Supply; iii) Exchange Rate; iv) Salaries and v) Inertia. The evidences reveals that inertia, external factors and the supply conditions overlap the demand in the determination of the Brazilian inflation. Thus, inflation shows to be little sensitive to the level of activity. 

ON SINGAPORE DOLLAR–U.S. DOLLAR AND PURCHASING POWER PARITY

2004 ◽  
Vol 49 (01) ◽  
pp. 71-84 ◽  
Author(s):  
VENUS KHIM-SEN LIEW ◽  
AHMAD ZUBAIDI BAHARUMSHAH ◽  
KIAN-PING LIM
Keyword(s):  
Exchange Rate ◽  
Price Index ◽  
Consumer Price Index ◽  
Smooth Transition ◽  
Adjustment Process ◽  
Economic Implications ◽  
Dollar Exchange Rate ◽  
Non Linear ◽  
Index Ratio ◽  
The Relationship

This study re-examines the validity of the relationship between the Singapore dollar–U.S. dollar exchange rate and relative prices using the latest econometric methodologies that account for non-linearity. Among others, this study finds Exponential Smooth Transition Autoregressive (ESTAR)-type non-linear mean-reverting adjustment process of the nominal Singapore dollar–U.S. dollar rate towards the consumer price index ratio. Unlike previous findings of a linear cointegration relationship between the nominal Singapore dollar–U.S. dollar exchange rate and consumer price index ratio, this study shows that the relationship is in fact non-linear in nature. The major economic implications of our findings are: (1) policy makers need to take non-linearity into consideration in their policy decisions; (2) the Monetary Authority of Singapore (MAS) is able to maintain the macroeconomic equilibrium despite the authority's strong dollar policy; and (3) one should keep track of Singapore's monetary policy and other innovations in aggregate demand in order to closely monitor the movement of the Singapore exchange rate.

Managing E-Governance

2013 ◽  
pp. 204-224 ◽  
Author(s):  
Gianluca Misuraca ◽  
Gianluigi Viscusi
Keyword(s):  
Public Sector ◽  
Smart Cities ◽  
Analytical Framework ◽  
Policy Implications ◽  
Value Drivers ◽  
Digital Innovation ◽  
The Public ◽  
Digital Governance ◽  
The Relationship ◽  
Practical Recommendations

This chapter presents and discusses the application of an analytical framework for managing digital innovation initiatives in the public sector. The chapter positions e-Government and digital innovation initiatives in the public sector within the broader framework of e-Governance (i.e. governance aided by ICT). It first introduces the conceptual framework on which the discussion is based, and then proposes a higher order conceptualization of the relationship between e-Governance and its underpinning value drivers of performance, openness and inclusion. In particular, the analysis focuses on the role that these value drivers plays in the enactment of digital governance initiatives such as the ones related to open government and smart cities. To this end, the chapter discusses its application to initiatives carried out in Barcelona and Tallinn. A typology of e-Governance ‘attitudes’ is then identified to provide evidence of further specific interventions required for an appropriate management of similar initiatives in other countries. The chapter concludes by highlighting the policy implications for administrative reform and offering practical recommendations for implementing digital governance initiatives.

scholarly journals Effects of External Factors on Organisational Cash Flow: Evidence From Ghana

2020 ◽  
Vol 10 (1) ◽  
pp. 1
Author(s):  
Abel Obeng Amanfo Ofori
Keyword(s):  
Cash Flow ◽  
Price Index ◽  
Consumer Price Index ◽  
External Factors ◽  
Flow Management ◽  
Cash Flow Management ◽  
Finance Management ◽  
Gdp Growth Rate ◽  
Effect Model ◽  
The Relationship

Effective cash flow management is essential in achieving the goals of every organisation. Businesses will fail to survive without efficient cash flow management. Existing literature reveals that key performance indicators of every organisation is influenced by forces in its external environment. The main objective of this study was thus to examine the effect of external factors within an organisation’s environment on the organisation’s cash flow.Random effect model was used to examine the relationship between key external factors organisational cash flow. The paper established that external factors had a significant impact on organisational cash flow. The paper further established that some external factors had some level of significant impact on cash flow. Taken as set, key external factors examined had little influence on variance in organisational cash flow position. Unemployment rate and Gross Domestic Product (GDP) growth rate were found not to have significant influence on organisational cash flow, while consumer price index was found to have a significant positive relationship with organisational cash flow.The paper recommends professionals and scholars in corporate finance management to analyse the effect of external factors on organizational cash flow when developing cash flow strategies.

scholarly journals Analysis of Effect Macro Variable on International Trade of Indonesia

2016 ◽  
Vol 6 (2) ◽  
pp. 228
Author(s):  
Evania Rahma Octavia ◽  
Dwi Wulandari
Keyword(s):  
International Trade ◽  
Exchange Rate ◽  
Interest Rates ◽  
Money Supply ◽  
Price Index ◽  
Time Series Data ◽  
Consumer Price Index ◽  
Series Data ◽  
The Exchange Rate ◽  
Macro Variables

This study aims to determine the effect of macro variables which include Indonesia's real gross domestic income, money supply, consumer price index and interest rates on international trade mediated by the exchange rate of rupiah against the dollar. This type of research is descriptive research with quantitative approach. Determination of the sample based on quarterly time series data 2010-2014. This study uses path analysis. The results showed domestic gross product, the money supply, and interest rates together  have a significant effect on the exchange rate but the consumer price index do not have significant effect on the exchange rate. The results also show that the exchange rate has no significant effect on imports and exports. 

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