Estimation of Money Demand and Money Supply Functions for Pakistan: A Simultaneous-equations Approach

Abstract

The role of monetary sector in determining the level of key macro-economic variables like income, employment and prices is well established in the economics literature. The importance of monetary economics has inspired many economists to undertake research in this field and most of their work on Pakistan relates to empirical estimation of the two key relationships in the monetary sector, namely, demand and supply functions for money.