Trade-off between Inflation, Interest and Unemployment Rate of Pakistan: Revisited

Authors

  • Sumera Arshad Department of Economics, University of the Punjab, Lahore, Pakistan Author
  • Amajd Ali Department of Economics, University of the Punjab, Lahore, Pakistan Author

DOI:

https://doi.org/10.61506/

Keywords:

Inflation Rate,, Unemployment Rate,, Interest Rate

Abstract

This study analyses the interrelationship of unemployment rate, interest rate and inflation rate in Pakistan over the period from 1974 to 2013. Autoregressive Distributed Lag (ARDL) model has been employed to find co-integration among variables of the models. Vector Error-Correction model is utilized for analysing short run dynamics of the models. The results do not provide significance trade-off between unemployment rate and inflation rate. Trade off exists in interest rate analysis over short run with inflation rate and unemployment rate. The empirical results show population growth and exchange rate have negative whereas external debt plays a positive role in determining unemployment rate in Pakistan. Money supply is revealed as major cause of inflation while exchange rate and imports have contributed negatively in inflation. The rate of interest has positive impact on domestic credit to private sector whereas it is negatively related to exchange rate.

Downloads

Published

2016-12-20

Issue

Section

Articles

How to Cite

Arshad, S. ., & Ali, A. . (2016). Trade-off between Inflation, Interest and Unemployment Rate of Pakistan: Revisited. Bulletin of Business and Economics (BBE), 5(4), 193-209. https://doi.org/10.61506/

Similar Articles

1-10 of 143

You may also start an advanced similarity search for this article.

Most read articles by the same author(s)

1 2 3 4 5 6 7 8 9 10 > >>