تلخیص
The impact of inflation is very devastating on the economy of a country.
The inflation can be both through increases in the prices as well as
through unsure increase in prices. This research paper interrogates the
effect of Pakistan fiscal policy over inflation. This paper also focused
on investigating the growth rate of government expenditure, taxes,
budget deficit, GDP, employment rate and interest rate and its
relationship with the inflation rate. For analyzing the data for the
period of 1980-2014 various techniques such as Multiple Regression,
Ramsey RESET test, ARCH test, the ADF unit root test and white test
are utilized. In case if there is 1% increase in the growth rate of
government expenditure, growth rate of GDP, interest rate and
employment rate then they result in 0.1537, 0.1144, 1.2842 and 3.6592
Percent increase in inflation rate respectively. This research paper
concluded that four independent variables (growth rate of government
expenditure, growth rate of GDP, interest rate and employment rate)
are significant while the remaining two independent variables (growth
rate of taxes and budget deficit) are insignificant. So, the impact of
fiscal policy is great over inflation.
Zia Ur Rehman, Atta Ullah Khan, Fazal Wahid. (2015) Measuring the Effects of Pakistan’s Fiscal Policy over Inflation: An Analysis for the Period of 1980-2014, Journal of Managerial Sciences, Volume 9, Issue 2.
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